Mortgagee Review Board; Administrative Actions, 24110-24112 [05-9142]
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24110
Federal Register / Vol. 70, No. 87 / Friday, May 6, 2005 / Notices
Lillian Deitzer at
Lillian_L_Deitzer@HUD.gov or
telephone (202) 708–2374. This is not a
toll-free number. Copies of available
documents submitted to OMB may be
obtained from Mr. Eddins or Ms.
Deitzer.
SUPPLEMENTARY INFORMATION: This
notice informs the public that the
Department of Housing and Urban
Development has submitted to OMB a
request for approval of the information
collection described below. This notice
is soliciting comments from members of
the public and affecting agencies
concerning the proposed collection of
information to: (1) Evaluate whether the
proposed collection of information is
necessary for the proper performance of
the functions of the agency, including
whether the information will have
practical utility; (2) evaluate the
accuracy of the agency’s estimate of the
burden of the proposed collection of
information; (3) enhance the quality,
utility, and clarity of the information to
be collected; and (4) minimize the
burden of the collection of information
on those who are to respond; including
through the use of appropriate
automated collection techniques or
other forms of information technology,
e.g., permitting electronic submission of
responses.
This notice also lists the following
information:
Title of Proposal: FHA Fee Inspector
Panel Application Package.
OMB Approval Number: 2502–0548.
Form Numbers: HUD–92563.
Description of the Need for the
Information and its Proposed Use: The
national FHA Inspector Roster is a
listing of FHA approved inspectors.
FHA approved mortgagees select
inspectors from the roster. The
information collection is essential to the
Department’s efforts to ensure that
compliance Inspectors possess the
prerequisite knowledge and skills to
assess the quality of construction of
homes before the homes can be accepted
as security for FHA insured loans.
Frequency of Submission: On
occasion.
Reporting Burden:
Number of respondents
1,000 .........................................................................................
Total Estimated Burden Hours: 2,250.
Status: Revision of a currently
approved collection.
Authority: Section 3507 of the Paperwork
Reduction Act of 1995, 44 U.S.C. 35, as
amended.
Dated: April 28, 2005.
Wayne Eddins,
Departmental Paperwork Reduction Act
Officer, Office of the Chief Information
Officer.
[FR Doc. E5–2204 Filed 5–5–05; 8:45 am]
BILLING CODE 4210–27–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–4980–N–18]
Federal Property Suitable as Facilities
to Assist the Homeless
x
Annual
responses
x
Hours per
response
1
....
2.25
....
2,250
call the toll-free Title V information line
at 1–800–927–7588.
SUPPLEMENTARY INFORMATION: In
accordance with the December 12, 1988
court order in National Coalition for the
Homeless v. Veterans Administration,
No. 88–2503–OG (D.D.C.), HUD
publishes a notice, on a weekly basis,
identifying unutilzed, under utilized,
excess and surplus Federal buildings
and real property that HUD has
reviewed for suitability for use to assist
the homeless. Today’s notice is for the
purpose of announcing that no
additional properties have been
determined suitable or unsuitable this
week.
Dated: April 28, 2005.
Mark R. Johnston,
Director, Office of Special Needs Assistance
Programs.
[FR Doc. 05–8835 Filed 5–5–05; 8:45 am]
Office of the Assistant
Secretary for Community Planning and
Development, HUD.
ACTION: Notice.
BILLING CODE 4210–29–M
SUMMARY: This notice identifies
unutilized, underutilized, excess, and
surplus Federal property reviewed by
HUD for suitability for possible use to
assist the homeless.
EFFECTIVE DATE: May 6, 2005.
FOR FURTHER INFORMATION CONTACT:
Kathy Ezzell, Department of Housing
and Urban Development, Room 7262,
451 Seventh Street, SW., Washington,
DC 20410; telephone (202) 708–1234;
TTY number for the hearing- and
speech-impaired (202) 708–2565, (these
telephone numbers are not toll-free), or
[Docket No. FR–4914–N–05]
AGENCY:
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DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
Mortgagee Review Board;
Administrative Actions
Office of the Assistant
Secretary for Housing—Federal Housing
Commissioner, HUD.
ACTION: Notice.
AGENCY:
SUMMARY: In compliance with section
202(c) of the National Housing Act, this
notice advises of the cause and
description of administrative actions
taken by HUD’s Mortgagee Review
PO 00000
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=
Burden hours
Board against HUD-approved
mortgagees.
FOR FURTHER INFORMATION CONTACT:
David E. Hintz, Secretary to the
Mortgagee Review Board, 451 Seventh
Street, SW., Washington, DC 20410–
8000, telephone: (202) 708–3856,
extension 3594. A Telecommunications
Device for Hearing- and SpeechImpaired Individuals (TTY) is available
at (800) 877–8339 (Federal Information
Relay Service).
SUPPLEMENTARY INFORMATION: Section
202(c)(5) of the National Housing Act
(added by section 142 of the Department
of Housing and Urban Development
Reform Act of 1989, Pub. L. 101–235,
approved December 15, 1989), requires
that HUD ‘‘publish a description of and
the cause for administrative action
against a HUD-approved mortgagee’’ by
the Department’s Mortgagee Review
Board (Board). In compliance with the
requirements of section 202(c)(5), this
notice advises of administrative actions
that have been taken by the Board from
July 1, 2004, to December 31, 2004.
1. Academy Mortgage Corporation, Salt
Lake City, Utah, [Docket No. 04–4399–
MR]
Action: Settlement Agreement signed
March 18, 2005. Without admitting fault
or liability, Academy Mortgage
Corporation (Academy) agreed to pay
HUD a civil money penalty in the
amount of $288,500 and indemnify
HUD on four loans. Academy also
agreed to reimburse each borrower
identified in Attachment B to the
Settlement Agreement, fees identified as
unallowable by HUD.
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06MYN1
Federal Register / Vol. 70, No. 87 / Friday, May 6, 2005 / Notices
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in origination
of HUD/FHA-insured loans where
Academy: Violated requirements
governing conflict of interest by paying
commissions to loan officers who had
received payment from another source
in the same HUD/FHA loan transaction;
failed to properly verify the
effectiveness, adequacy and/or stability
of income used in qualifying borrowers;
failed to properly verify the source and
adequacy of funds required for closing;
failed to ensure outstanding judgments
were satisfied prior to closing the loan;
failed to document that it reviewed the
real estate appraisals for 64 HUD/FHA
insured mortgage loans that it
underwrote. Specifically, Academy did
not document that it analyzed
appraisals that showed large increases
in value and recent sales; charged
borrowers unallowable fees, such as
documentation preparation fee,
document review fee, funding fee, wire
fee, Administrative Compliance fee,
Neighborhood Gold fee, and Wire
review fee, among others; and failed to
retain entire case files for loans it
originated.
2. Chess Financial Services, Inc., Camp
Springs, MD [Docket No. 04–4355–MR]
Action: The Board voted to reject
Chess Financial Services, Inc.’s (Chess)
settlement offer and imposed a civil
money penalty of $43,500.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in origination
of HUD/FHA-insured loans where
Chess: permitted its employees to
process loans in which they were
interested parties; permitted three
individuals who were not employees, or
who were not excusive employees, to
originate mortgages; failed to maintain a
quality control plan for the origination
of HUD/FHA insured mortgages for two
fiscal years, and failed to complete
quality control reviews in accordance
with HUD/FHA requirements; and
failed to maintain complete loan
origination files for review and to
comply with HUD’s requests for
documentation.
3. First Service Mortgage, Inc., College
Park, GA [Docket No. 04–4440–MR]
Action: Settlement Agreement signed
December 20, 2004. Without admitting
fault or liability, First Service Mortgage,
Inc. (First Service) agreed to pay an
administrative payment of $16,350 and
indemnify HUD for any losses on two
loans.
Cause: The Board took this action
based on the following violations of
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18:03 May 05, 2005
Jkt 205001
HUD/FHA requirements in origination
of HUD/FHA-insured loans where First
Service: failed to remit Mortgage
Insurance Premium (MIP) within 15
days; failed to ensure employees worked
exclusively for First Service submitted
false and conflicting documentation to
obtain HUD/FHA Mortgage Insurance;
failed to maintain a Quality Control
Plan that complies with HUD/FHA
requirements; and originated a second
FHA-insured mortgage without
obtaining the required information, and
without resolving discrepancies.
4. First Union National Bank d/b/a
Wachovia Bank, N.A., Raleigh, NC
[Docket No. 04–4230–MR]
Action: Settlement Agreement signed
January 6, 2005. Without admitting fault
or liability, Wachovia Bank, N.A.
(Wachovia) agreed to pay an
administrative payment of $8,500.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in origination
of HUD/FHA-insured loans where First
Union National Bank (First Union):
failed to notify HUD of its merger with
Wachovia; and First Union failed to
timely perform property inspection on
one HUD/FHA insured multifamily
project.
5. International Home Mortgage Capital
Corporation, Las Vegas, NV [04–4388–
MR]
Action: On November 29, 2004, the
Board issued a letter to International
Home Mortgage Capital Corporation
(International Home Mortgage)
immediately withdrawing its HUD/FHA
approval for five years. The Board also
voted to impose a civil money penalty
in the amount of $118,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in origination
of HUD/FHA-insured loans where
International Home Mortgage: Failed to
implement a Quality Control Plan in
accordance with HUD/FHA
requirements; failed to verify the source
and adequacy of borrowers’ funds to
close their loans; failed to verify and
analyze borrowers’ effective income;
failed to analyze borrowers’ liabilities;
failed to ensure compliance with HUD/
FHA credit requirements for borrowers;
and failed to calculate the maximum
mortgage amount.
6. Mann Financial, Inc., Helena, MT
[Docket No. 04–4280–MR]
Action: Settlement Agreement signed
March 29, 2005. Without admitting fault
or liability, Mann Financial, Inc. (Mann)
agreed to pay HUD an administrative
payment in the amount of $46,000 and
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24111
indemnify HUD on four loans. Mann
also agreed to pay HUD $3,982 as paydown of principal on two loans.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in origination
of HUD/FHA-insured loans where
Mann: Failed to ensure HUD/FHA loans
were originated by Mann employees;
submitted false certifications to HUD
regarding whether information was
obtained directly from the borrowers by
full-time employees of the lender;
underwrote mortgages for mortgagees
that were not approved loan
correspondents for Mann; failed to
implement fully its quality control plan
in that it did not review eight defaulting
mortgages; failed to document
adequately the borrower’s source of
funds for the down payment and/or
closing costs; failed to ensure that the
allowable maximum mortgage amount
was not exceeded; admitted underwriter
error caused a mortgage amount in
excess of the maximum allowed and has
offered to pay-down the mortgage in
connection with a settlement; failed to
document accurately and/or calculate
the borrower’s effective income.
Specifically, Mann failed to document
that SSI income would continue for the
first three years of a mortgage; failed to
document income and Mann did not
establish a sufficient employment
history; failed to meet the underwriting
requirements relative to a temporary
interest rate buy down. Specifically,
Mann did not demonstrate that
borrowers for three mortgages had
likelihood for increased income after the
buy down period ended; and failed to
document the contributory value of
sweat equity labor. Mann failed to
document the market value of a
borrower’s roofing, siding, framing,
carpentry and painting.
7. Mirad Financial Group, Inc., San
Diego, CA [Docket No. 03–3159–MR]
Action: Settlement Agreement signed
October 1, 2004. Without admitting fault
or liability, Mirad Financial Group, Inc.,
(Mirad) agreed to pay a civil money
penalty of $46,000. Mirad also agreed to
indemnify HUD for any losses incurred
on six loans.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in origination
of HUD/FHA-insured loans where
Mirad: Failed to ensure that loan officer
who originated three loans was not
suspended from participating in
government programs; used
independent contractors to originate 18
FHA-insured loans; underwrote loans
for mortgagees that were not on HUD’s
list of approved loan correspondents for
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06MYN1
24112
Federal Register / Vol. 70, No. 87 / Friday, May 6, 2005 / Notices
Mirad; failed to adequately document
gift funds used for downpayment and/
or closing costs; failed to ensure that the
borrower met the 3 percent minimum
downpayment requirement; failed to
ensure the borrower did not exceed the
maximum allowable mortgage; failed to
obtain a satisfactory explanation of the
borrower’s late payments, charge-offs
and collection accounts; and failed to
adequately document that the seller
owned the property.
8. Realty Mortgage Corporation,
Flowood, MS [Docket No. 04–4443–MR]
Action: Settlement Agreement signed
November 12, 2004. Without admitting
fault or liability, Realty Mortgage
Corporation (Realty Mortgage) agreed to
pay HUD an administrative payment of
$81,500 and indemnify HUD on three
loans.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in origination
of HUD/FHA-insured loans where
Realty Mortgage: Accepted loans that
were originated by a non-HUD approved
lender; underwrote the loans which
clearly indicated that a third party was
involved in the origination; failed to
adequately verify the source and/or
adequacy of funds used for earnest
money deposits and/or close loan
transactions; closed loans in excess of
the maximum allowable mortgage
amount resulting in over-insured
mortgages; and failed to close loans in
accordance with the terms of the sales
contracts and/or to obtain the required
real estate certifications.
9. Seattle Mortgage Company, Seattle,
WA [Docket No. 05–5021–MR]
Action: Settlement Agreement signed
March 28, 2005. Without admitting fault
or liability, Seattle Mortgage Company
(Seattle Mortgage) agreed to pay HUD an
administrative payment in the amount
of $21,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements where Seattle
Mortgage: Violated HUD/FHA conflict
of interest provisions by paying
commissions to a loan officer who
originated HUD/FHA-insured loans and
who also received 203(k) consultant fees
in connection with those loans.
10. Tribeca Mortgage Corporation, Lake
Success, NY [Docket No. 04–4367–MR]
Action: The Board voted to impose a
civil money penalty on Tribeca
Mortgage Corporation (Tribeca) in the
amount of $30,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in origination
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18:03 May 05, 2005
Jkt 205001
of HUD/FHA-insured loans where
Tribeca: Originated loans where the
borrowers were charged fees in excess of
the one percent allowable origination
fee for services covered by the
origination fee; originated loans without
an approved relationship with the HUDapproved sponsor, and/or without being
identified as the originating lender
when the FHA Case Number was
requested; failed to file required annual
reports regarding loan origination
activity; and failed to maintain and
implement an adequate Quality Control
Plan in compliance with HUD/FHA
requirements.
Dated: April 29, 2005.
John C. Weicher,
Assistant Secretary for Housing-Federal
Housing Commissioner.
[FR Doc. 05–9142 Filed 5–5–05; 8:45 am]
BILLING CODE 4210–27–P
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
Aquatic Nuisance Species Task Force
Gulf and South Atlantic Regional Panel
Meeting
Fish and Wildlife Service,
Interior.
ACTION: Notice of meeting.
AGENCY:
SUMMARY: This notice announces a
meeting of the Aquatic Nuisance
Species (ANS) Task Force Gulf and
South Atlantic Regional Panel. The
meeting is open to the public. The
meeting topics are identified in the
SUPPLEMENTARY INFORMATION section.
DATES: The Gulf and South Atlantic
Regional Panel will meet from 9 a.m. to
5 p.m. on Thursday, May 12, 2005, and
9 a.m. to noon on Friday, May 13, 2005.
ADDRESSES: The Gulf and South Atlantic
Regional Panel meeting will be held at
the Wyndham Casa Marine Resort, 1500
Reynolds Street, Key West, Florida
33040; (305) 296–3535 or (800) 626–
0777. Minutes of the meeting will be
maintained in the office of Division of
Environmental Quality, Chief, Branch of
Invasive Species, U.S. Fish and Wildlife
Service, Suite 322, 4401 North Fairfax
Drive, Arlington, Virginia 22203–1622.
FOR FURTHER INFORMATION CONTACT: Ron
Lukens, Gulf and South Atlantic
Regional Panel Chair and Assistant
Director, Gulf States Marine Fisheries
Commission, at (228) 875–5912.
SUPPLEMENTARY INFORMATION: Pursuant
to section 10(a)(2) of the Federal
Advisory Committee Act (5 U.S.C. App.
I), this notice announces the meeting of
the ANS Task Force Gulf and South
PO 00000
Frm 00152
Fmt 4703
Sfmt 4703
Atlantic Regional Panel. The ANS Task
Force was established by the
Nonindigenous Aquatic Nuisance
Prevention and Control Act of 1990. The
Gulf of Mexico Regional Panel was
established by the ANS Task Force in
1999, and renamed the Gulf and South
Atlantic Regional Panel in 2004. The
Gulf and South Atlantic Regional Panel,
comprised of representatives from
Federal, State, local agencies and from
private environmental and commercial
interests, performs the following
activities:
a. Identifies priorities for activities in
the Gulf of Mexico and the South
Atlantic region,
b. Develops and submits
recommendations to the national ANS
Task Force,
c. Coordinates ANS program activities
in the Gulf of Mexico and the South
Atlantic region,
d. Advises public and private
interests on control efforts, and
e. Submits an annual report to the
Aquatic Nuisance Species Task Force
describing activities within the Gulf of
Mexico and South Atlantic region
related to ANS prevention, research,
and control.
The Panel membership includes six
Gulf of Mexico and South Atlantic
States: Alabama, Florida, Georgia,
Louisiana, Mississippi, and Texas. The
Gulf and South Atlantic Regional Panel
will discuss several topics at this
meeting including: an overview from
the Exotic Pest Plant Council;
participation in the HabitattitudeTM
initiative; South Carolina’s membership
in the panel; Status of State plans for
member States; the panel’s 5-year
strategic plan; Risk Assessment training;
research on introduced fish in Florida
Natural Areas; Hazard Analysis and
Critical Control Point training; brown
treesnake update; Southeast Aquatic
Resources Partnership; Rapid Response
Plans; ANS Task Force update; National
Invasive Species Council/Invasive
Species Advisory Committee;
recommendations for the ANS Task
Force; and updates from Panel
members.
Dated: April 21, 2005.
Mamie A. Parker,
Co-Chair, Aquatic Nuisance Species Task
Force, Assistant Director—Fisheries & Habitat
Conservation.
[FR Doc. 05–9020 Filed 5–2–05; 4:19 pm]
BILLING CODE 4310–55–P
E:\FR\FM\06MYN1.SGM
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]]>Agencies
[Federal Register Volume 70, Number 87 (Friday, May 6, 2005)]
[Notices]
[Pages 24110-24112]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9142]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4914-N-05]
Mortgagee Review Board; Administrative Actions
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: In compliance with section 202(c) of the National Housing Act,
this notice advises of the cause and description of administrative
actions taken by HUD's Mortgagee Review Board against HUD-approved
mortgagees.
FOR FURTHER INFORMATION CONTACT: David E. Hintz, Secretary to the
Mortgagee Review Board, 451 Seventh Street, SW., Washington, DC 20410-
8000, telephone: (202) 708-3856, extension 3594. A Telecommunications
Device for Hearing- and Speech-Impaired Individuals (TTY) is available
at (800) 877-8339 (Federal Information Relay Service).
SUPPLEMENTARY INFORMATION: Section 202(c)(5) of the National Housing
Act (added by section 142 of the Department of Housing and Urban
Development Reform Act of 1989, Pub. L. 101-235, approved December 15,
1989), requires that HUD ``publish a description of and the cause for
administrative action against a HUD-approved mortgagee'' by the
Department's Mortgagee Review Board (Board). In compliance with the
requirements of section 202(c)(5), this notice advises of
administrative actions that have been taken by the Board from July 1,
2004, to December 31, 2004.
1. Academy Mortgage Corporation, Salt Lake City, Utah, [Docket No. 04-
4399-MR]
Action: Settlement Agreement signed March 18, 2005. Without
admitting fault or liability, Academy Mortgage Corporation (Academy)
agreed to pay HUD a civil money penalty in the amount of $288,500 and
indemnify HUD on four loans. Academy also agreed to reimburse each
borrower identified in Attachment B to the Settlement Agreement, fees
identified as unallowable by HUD.
[[Page 24111]]
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in origination of HUD/FHA-insured loans where
Academy: Violated requirements governing conflict of interest by paying
commissions to loan officers who had received payment from another
source in the same HUD/FHA loan transaction; failed to properly verify
the effectiveness, adequacy and/or stability of income used in
qualifying borrowers; failed to properly verify the source and adequacy
of funds required for closing; failed to ensure outstanding judgments
were satisfied prior to closing the loan; failed to document that it
reviewed the real estate appraisals for 64 HUD/FHA insured mortgage
loans that it underwrote. Specifically, Academy did not document that
it analyzed appraisals that showed large increases in value and recent
sales; charged borrowers unallowable fees, such as documentation
preparation fee, document review fee, funding fee, wire fee,
Administrative Compliance fee, Neighborhood Gold fee, and Wire review
fee, among others; and failed to retain entire case files for loans it
originated.
2. Chess Financial Services, Inc., Camp Springs, MD [Docket No. 04-
4355-MR]
Action: The Board voted to reject Chess Financial Services, Inc.'s
(Chess) settlement offer and imposed a civil money penalty of $43,500.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in origination of HUD/FHA-insured loans where
Chess: permitted its employees to process loans in which they were
interested parties; permitted three individuals who were not employees,
or who were not excusive employees, to originate mortgages; failed to
maintain a quality control plan for the origination of HUD/FHA insured
mortgages for two fiscal years, and failed to complete quality control
reviews in accordance with HUD/FHA requirements; and failed to maintain
complete loan origination files for review and to comply with HUD's
requests for documentation.
3. First Service Mortgage, Inc., College Park, GA [Docket No. 04-4440-
MR]
Action: Settlement Agreement signed December 20, 2004. Without
admitting fault or liability, First Service Mortgage, Inc. (First
Service) agreed to pay an administrative payment of $16,350 and
indemnify HUD for any losses on two loans.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in origination of HUD/FHA-insured loans where
First Service: failed to remit Mortgage Insurance Premium (MIP) within
15 days; failed to ensure employees worked exclusively for First
Service submitted false and conflicting documentation to obtain HUD/FHA
Mortgage Insurance; failed to maintain a Quality Control Plan that
complies with HUD/FHA requirements; and originated a second FHA-insured
mortgage without obtaining the required information, and without
resolving discrepancies.
4. First Union National Bank d/b/a Wachovia Bank, N.A., Raleigh, NC
[Docket No. 04-4230-MR]
Action: Settlement Agreement signed January 6, 2005. Without
admitting fault or liability, Wachovia Bank, N.A. (Wachovia) agreed to
pay an administrative payment of $8,500.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in origination of HUD/FHA-insured loans where
First Union National Bank (First Union): failed to notify HUD of its
merger with Wachovia; and First Union failed to timely perform property
inspection on one HUD/FHA insured multifamily project.
5. International Home Mortgage Capital Corporation, Las Vegas, NV [04-
4388-MR]
Action: On November 29, 2004, the Board issued a letter to
International Home Mortgage Capital Corporation (International Home
Mortgage) immediately withdrawing its HUD/FHA approval for five years.
The Board also voted to impose a civil money penalty in the amount of
$118,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in origination of HUD/FHA-insured loans where
International Home Mortgage: Failed to implement a Quality Control Plan
in accordance with HUD/FHA requirements; failed to verify the source
and adequacy of borrowers' funds to close their loans; failed to verify
and analyze borrowers' effective income; failed to analyze borrowers'
liabilities; failed to ensure compliance with HUD/FHA credit
requirements for borrowers; and failed to calculate the maximum
mortgage amount.
6. Mann Financial, Inc., Helena, MT [Docket No. 04-4280-MR]
Action: Settlement Agreement signed March 29, 2005. Without
admitting fault or liability, Mann Financial, Inc. (Mann) agreed to pay
HUD an administrative payment in the amount of $46,000 and indemnify
HUD on four loans. Mann also agreed to pay HUD $3,982 as pay-down of
principal on two loans.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in origination of HUD/FHA-insured loans where
Mann: Failed to ensure HUD/FHA loans were originated by Mann employees;
submitted false certifications to HUD regarding whether information was
obtained directly from the borrowers by full-time employees of the
lender; underwrote mortgages for mortgagees that were not approved loan
correspondents for Mann; failed to implement fully its quality control
plan in that it did not review eight defaulting mortgages; failed to
document adequately the borrower's source of funds for the down payment
and/or closing costs; failed to ensure that the allowable maximum
mortgage amount was not exceeded; admitted underwriter error caused a
mortgage amount in excess of the maximum allowed and has offered to
pay-down the mortgage in connection with a settlement; failed to
document accurately and/or calculate the borrower's effective income.
Specifically, Mann failed to document that SSI income would continue
for the first three years of a mortgage; failed to document income and
Mann did not establish a sufficient employment history; failed to meet
the underwriting requirements relative to a temporary interest rate buy
down. Specifically, Mann did not demonstrate that borrowers for three
mortgages had likelihood for increased income after the buy down period
ended; and failed to document the contributory value of sweat equity
labor. Mann failed to document the market value of a borrower's
roofing, siding, framing, carpentry and painting.
7. Mirad Financial Group, Inc., San Diego, CA [Docket No. 03-3159-MR]
Action: Settlement Agreement signed October 1, 2004. Without
admitting fault or liability, Mirad Financial Group, Inc., (Mirad)
agreed to pay a civil money penalty of $46,000. Mirad also agreed to
indemnify HUD for any losses incurred on six loans.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in origination of HUD/FHA-insured loans where
Mirad: Failed to ensure that loan officer who originated three loans
was not suspended from participating in government programs; used
independent contractors to originate 18 FHA-insured loans; underwrote
loans for mortgagees that were not on HUD's list of approved loan
correspondents for
[[Page 24112]]
Mirad; failed to adequately document gift funds used for downpayment
and/or closing costs; failed to ensure that the borrower met the 3
percent minimum downpayment requirement; failed to ensure the borrower
did not exceed the maximum allowable mortgage; failed to obtain a
satisfactory explanation of the borrower's late payments, charge-offs
and collection accounts; and failed to adequately document that the
seller owned the property.
8. Realty Mortgage Corporation, Flowood, MS [Docket No. 04-4443-MR]
Action: Settlement Agreement signed November 12, 2004. Without
admitting fault or liability, Realty Mortgage Corporation (Realty
Mortgage) agreed to pay HUD an administrative payment of $81,500 and
indemnify HUD on three loans.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in origination of HUD/FHA-insured loans where
Realty Mortgage: Accepted loans that were originated by a non-HUD
approved lender; underwrote the loans which clearly indicated that a
third party was involved in the origination; failed to adequately
verify the source and/or adequacy of funds used for earnest money
deposits and/or close loan transactions; closed loans in excess of the
maximum allowable mortgage amount resulting in over-insured mortgages;
and failed to close loans in accordance with the terms of the sales
contracts and/or to obtain the required real estate certifications.
9. Seattle Mortgage Company, Seattle, WA [Docket No. 05-5021-MR]
Action: Settlement Agreement signed March 28, 2005. Without
admitting fault or liability, Seattle Mortgage Company (Seattle
Mortgage) agreed to pay HUD an administrative payment in the amount of
$21,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements where Seattle Mortgage: Violated HUD/FHA
conflict of interest provisions by paying commissions to a loan officer
who originated HUD/FHA-insured loans and who also received 203(k)
consultant fees in connection with those loans.
10. Tribeca Mortgage Corporation, Lake Success, NY [Docket No. 04-4367-
MR]
Action: The Board voted to impose a civil money penalty on Tribeca
Mortgage Corporation (Tribeca) in the amount of $30,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in origination of HUD/FHA-insured loans where
Tribeca: Originated loans where the borrowers were charged fees in
excess of the one percent allowable origination fee for services
covered by the origination fee; originated loans without an approved
relationship with the HUD-approved sponsor, and/or without being
identified as the originating lender when the FHA Case Number was
requested; failed to file required annual reports regarding loan
origination activity; and failed to maintain and implement an adequate
Quality Control Plan in compliance with HUD/FHA requirements.
Dated: April 29, 2005.
John C. Weicher,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 05-9142 Filed 5-5-05; 8:45 am]
BILLING CODE 4210-27-P
