Mortgagee Review Board; Administrative Actions, 75210-75213 [E5-7503]
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Federal Register / Vol. 70, No. 242 / Monday, December 19, 2005 / Notices
Control Number and should be sent to:
Wayne Eddins, Reports Management
Officer, Department of Housing and
Urban Development, 451 7th Street,
SW., L’Enfant Plaza Building, Room
8001, Washington, DC 20410 or
Wayne_Eddins@hud.gov.
FOR FURTHER INFORMATION CONTACT: Joe
McCloskey, Director, Office of Single
Family Asset Management, Department
of Housing and Urban Development,
451 7th Street SW., Washington, DC
20410, telephone (202) 708–1672 (this is
not a toll free number) for copies of the
proposed forms and other available
information.
SUPPLEMENTARY INFORMATION: The
Department is submitting the proposed
information collection to OMB for
review, as required by the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35, as amended).
This Notice is soliciting comments
from members of the public and affected
agencies concerning the proposed
collection of information to: (1) Evaluate
whether the proposed collection 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
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: Deed-in-Lieu of
Foreclosure (Corporate Mortgagors or
Mortgagors Owning More than One
Property).
OMB Control Number, if applicable:
2502–0301.
Description of the need for the
information and proposed use:
Mortgagees must obtain written consent
from HUD’s National Servicing Center
to accept a deed-in-lieu of foreclosure
when the mortgagor is a corporate
mortgagor or a when mortgagor owns
more than one property. Mortgagees
must provide HUD with specific
information. HUD uses this information
collection to review specific
requirements in assessing the validity of
accepting a deed-in-lieu of foreclosure.
Agency form numbers, if applicable:
None.
Estimation of the total numbers of
hours needed to prepare the information
collection including number of
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respondents, frequency of response, and
hours of response: The estimated total
number of hours needed to prepare the
information collection is 12.50, the
number of respondents is 600 generating
25 annual responses, the frequency of
response is on occasion, and the time to
prepare per response is 30 minutes.
Status of the proposed information
collection: This is an extension of a
currently approved collection.
Authority: The Paperwork Reduction Act
of 1995, 44 U.S.C., Chapter 35, as amended.
Dated: December 12, 2005.
Frank L. Davis,
General Deputy Assistant Secretary for
Housing, Deputy Federal Housing
Commissioner.
[FR Doc. E5–7502 Filed 12–16–05; 8:45 am]
BILLING CODE 4210–27–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–4914-N–07]
Mortgagee Review Board;
Administrative Actions
Office of the Assistant
Secretary for Housing-Federal Housing
Commissioner, Department of Housing
and Urban Development (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
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
August 25, 2004 to October 18, 2005.
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1. Accent Mortgage Services, Inc.,
Alpharetta, GA [Docket No. 03–3219–
MR]
Action: On September 12, 2005, the
Board issued a letter to Accent Mortgage
Services, Inc. (Accent), withdrawing its
HUD/FHAapproval for five years. The
Board also voted to impose a civil
money penalty in the amount of $6,500.
Cause: The Board took this action
because Accent failed to comply with
the terms of a Settlement Agreement
dated March 26, 2004 to pay civil
money penalties to the Department in
the amount of $75,000.
2. Alliance Mortgage Banking
Corporation, Levittown, NY [Docket No.
04–4818–MR]
Action: Settlement Agreement signed
September 16, 2005. Without admitting
liability or fault, Alliance Mortgage
Banking Corporation (Alliance) agreed
to pay an administrative payment in the
amount of $136,775, indemnify HUD on
16 HUD/FHA-insured loans and
reimburse 27 HUD/FHA borrowers
unallowable charges in the amount of
$12,193. Additionally, Alliance agreed
to retain an independent quality control
firm to conduct a quality control review
of twenty HUD/FHA loans, consisting of
current and defaulted loans. Based upon
the results of this review, Alliance
would submit to HUD a corrective
action plan that addresses the findings
of the quality control review and the
issues outlined in the Notice of
Violation.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Alliance: Permitted employees to
be involved in the processing of loan
applications on loans where they were
the seller; used falsified documentation
or conflicting information in originating
loans and/or obtaining HUD/FHAinsured mortgages; failed to resolve
discrepancies or fully obtain and
analyze the terms and conditions of the
real estate transaction and consider the
acquisition cost of recently acquired
properties in the underwriting of loans;
failed to properly verify the source and/
or adequacy of funds for the
downpayment and/or closing costs;
failed to properly verify income; failed
to limit seller contributions to the
maximum permitted by HUD; failed to
ensure timely completion and/or
establish an escrow account for
incomplete property repairs; submitted
delinquent loans for mortgage insurance
endorsement; failed to remit Up-Front
Mortgage Insurance Premiums within 15
days from the date of loan closing;
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permitted a borrower to obtain a HUD/
FHA loan within three years of a
foreclosed loan; violated HUD/FHA
third party origination restrictions; and
failed to ensure borrowers, who had
been charged a commitment fee,
executed a Commitment Agreement
guaranteeing discount points and/or
interest rates, at least 15 days prior to
the date the loan closed.
3. American Union Mortgage, Inc.,
Ogden, UT [Docket No. 05–5049–MR]
Action: On October 18, 2005, the
Board issued a letter to American Union
Mortgage, Inc. (American Union)
withdrawing its HUD/FHA approval for
five years. The Board also voted to
impose a civil money penalty in the
amount of $6,500.
Cause: The Board took this action
because American Union failed to
comply with the terms of a Settlement
Agreement with the Department dated
May 14, 2004 to pay civil money
penalties to the Department in the
amount of $150,000.
4. Bancplus Home Mortgage Center,
Inc., Ft. Lauderdale, FL [Docket No. 04–
4450–MR]
Action: Settlement Agreement signed
May 24, 2005. Without admitting
liability or fault, Bancplus Home
Mortgage Center, Inc. agreed to pay an
administrative payment in the amount
of $24,000 and indemnify HUD on two
loans.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Bancplus: Failed to implement a
Quality Control Plan in conformance
with HUD/FHA requirements (repeat
finding); and failed to properly
document the source and/or adequacy
of funds used for the downpayment
and/or closing cost.
5. Costal Capital Corp., Greenvale, NY
[Docket No. 04–4384–MR]
Action: Settlement Agreement signed
June 7, 2005. Without admitting liability
or fault, Costal Capital Corp. (Costal)
agreed to pay a civil money penalty in
the amount of $134,500, indemnify
HUD on three loans and reimburse
borrowers for impermissible expenses
totaling $7,014.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Costal: Violated third party
origination restrictions; improperly
allowed documents to pass through the
hands of interested third parties;
certifying falsely on form HUD–92900–
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A, Part II, Lender Certification;
approved loans where the total
origination fees charged to the
borrowers were in excess of one percent;
failed to properly verify the source and
adequacy of funds used for the
downpayment and/or closing costs;
permitted borrowers to be charged fees
that were not allowable under HUD/
FHA requirements; failed to disclose all
fees paid by the borrowers or on their
behalf on the HUD–1 Settlement
Statement; and failed to implement and
maintain a Quality Control Plan in
compliance with HUD/FHA
requirements.
6. De Oro, Inc., Ontario, CA [Docket No.
05–5073–MR]
Action: On September 12, 2005, the
Board issued a letter to De Oro, Inc. (De
Oro) withdrawing its HUD/FHA
approval for five years. The Board also
voted to impose a civil money penalty
in the amount of $26,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements where De Oro:
Failed to comply with the terms of
agreements requiring De Oro to
indemnify the Department; failed to
accrue or note a significant contingent
liability in HUD’s Lender Assessment
Sub-System financial statement
submission; misrepresented its net
worth; and provided HUD a false
certification.
7. Global Financial Services, Inc.,
Bethesda, MD [Docket No. 04–4263–
MR]
Action: Settlement Agreement signed
September 13, 2005. Global Financial
Services, Inc. (Global) agreed to pay a
civil money penalty in the amount of
$62,500 and to immediate withdrawal of
Global’s HUD/FHA-approval for four
years.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Global: Employed an individual
who has been debarred by the
Department; and failed to implement
and maintain a Quality Control Plan in
compliance with HUD/FHA
requirements.
8. Home Loan Mortgage Corporation,
Hesperia, CA [Docket No. 05–5002–MR]
Action: On April 1, 2005, the Board
issued a letter to Home Loan Mortgage
Corporation (Home) withdrawing its
HUD/FHA-approval for five years. The
Board also voted to impose a civil
money penalty in the amount of $6,500.
Cause: The Board took this action
because Home failed to comply with the
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terms of the Settlement Agreement
executed with the Department dated
May 3, 2001.
9. iMortgage Funding Corporation d/b/
a Guaranty Mortgage, Houston, TX [04–
4435–MR]
Action: Settlement Agreement signed
May 11, 2005. Without admitting
liability or fault, iMortgage Funding
Corporation d/b/a Guaranty Mortgage
(iMortgage), agreed to pay a civil money
penalty in the amount of $379,100 and
indemnify HUD on 17 HUD/FHAinsured loans.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where iMortgage: Paid prohibited
compensation to employees performing
underwriting duties; failed to remit
Upfront Mortgage Insurance Premiums
to HUD/FHA within 15 days of loan
closing; failed to adopt and implement
a Quality Control Plan in compliance
with HUD/FHA requirements; used
documentation that was falsified and/or
contained unresolved discrepancies;
failed to properly verify the source and
adequacy of funds used for the cash
requirements and allowed funds for
closing from unacceptable sources;
failed to properly document and/or
calculate income used for qualification
or to justify loan approval with
excessively high ratios of debt to
income; omitted and understated
liabilities, and failed to consider
contingent liabilities in loan
qualification; failed to obtain credit
reports that met HUD/FHA
requirements; approved mortgagors with
unacceptable credit histories, without
adequate justification; approved
mortgage loans for ineligible mortgagors;
and failed to document properly or
analyze adequately the credit histories
of mortgagors who did not use
traditional credit or who did not have
acceptable traditional credit histories.
10. Karim Enterprises, Inc., St. Charles,
MO [Docket No. 05–5017–MR]
Action: Settlement Agreement signed
July 8, 2005. Without admitting liability
or fault, Karim Enterprises, Inc. (Karim)
agreed to pay HUD a civil money
penalty in the amount of $22,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Karim: Loaned gift funds to a
donor in HUD/FHA-insured mortgage
transaction; submitted or caused the
submission of false information to HUD
in connection with a HUD/FHA-insured
mortgage transaction; and failed to
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implement a Quality Control Plan in
conformance with HUD/FHA
requirements.
11. KB Home Mortgage Company, Los
Angeles, CA [Docket No. 05–5020–MR]
Action: Settlement Agreement signed
June 27, 2005. Without admitting
liability or fault, KB Home Mortgage
Company (KB Home) agreed to pay HUD
an administrative payment in the
amount of $3,200,000. KB Home also
agreed to prepare and submit a
compliance plan acceptable to HUD that
details the policies and procedures KB
Home will implement to rectify the
violations of HUD requirements
identified in the Notice of Violation.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where KB Home: Approved loans with
ratios exceeding guidelines without
compensating factors or without
adequate compensating factors;
approved loans based on effective
income that was overstated, improperly
calculated or inadequately documented;
failed to include or determine all of the
mortgagor’s liabilities and/or liabilities
of the non-purchasing spouse in loan
qualification; failed to properly verify
the source and/or adequacy of funds
required and/or there were insufficient
funds verified to close; approved loans
to borrowers who were not eligible
because of unpaid court-ordered
judgments and delinquent federal debt;
approved loans to borrowers who were
not eligible because of past credit
performance; failed to address and
resolve significant file discrepancies;
failed to ensure property compliance
with the Builder’s Certification of Plans,
Specifications and Site, HUD form
92541; failed to ensure the mortgagor
met the minimum required investment
because the loan exceeded the
maximum allowable mortgage amount;
failed to ensure the mortgagor was not
charged excessive and/or unallowable
fees and/or there was no documentation
supporting the fee; failed to ensure that
the HUD–1 Settlement Statement
reflected the earnest money deposit that
was shown on the sales contract and the
loan application; failed to ensure the
accuracy of the information contained
in the HUD–1A, Addendum to the
HUD–1 Settlement Statement; and failed
to ensure gift letters met HUD
requirements.
12. Major Mortgage Corporation,
Lathrup Village, MI [Docket No. 05–
5071–MR]
Action: On September 8, 2005, the
Board issued a letter to Major Mortgage
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18:59 Dec 16, 2005
Jkt 208001
Corporation (Major Mortgage)
withdrawing its HUD/FHA approval for
five years. The Board also voted to
impose a civil money penalty in the
amount of $6,500.
Cause: The Board took this action
because Major Mortgage failed to
comply with the terms of a Settlement
Agreement dated November 30, 1998
whereby Major Mortgage agreed to
indemnify HUD on 15 loans.
13. Megamerica Mortgage Group, Inc.,
San Antonio, TX [Docket No. 04–4262–
MR]
Action: Settlement Agreement signed
April 6, 2005. Without admitting
liability or fault, Megamerica Mortgage
Group, Inc. (Megamerica) agreed to pay
an administrative payment in the
amount of $20,500.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Megamerica: Operated branch
offices under prohibited branch
arrangements; failed to implement and
maintain a Quality Control Plan in
compliance with HUD/FHA
requirements; failed to file annual
reports regarding loan application
activity required by Mortgagee Letter
95–3 and HUD Handbook 4155.1 REV–
4 CHG 1; and charged mortgagors
excessive or prohibited fees.
14. Pike Creek Mortgage Services, Inc.,
Wilmington, DE [Docket No. 04–4629–
MR]
Action: Settlement Agreement signed
September 14, 2005. Without admitting
liability or fault, Pike Creek Mortgage
Services, Inc. (Pike Creek) agreed to pay
a civil money penalty in the amount of
$19,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Pike Creek: Failed to ensure that
loans were originated by its employees;
falsely certified on the HUD/VA
Addendum to the Uniform Residential
Loan Application, form HUD–92900–A,
Part II Lender Certification; failed to
retain a loan origination file; failed to
file annual reports regarding loan
application activity; and failed to
implement and maintain a Quality
Control Plan in compliance with HUD/
FHA requirements.
15. RTM Funding, Inc., Kingwood, TX
[Docket No. 03–3169–MR]
Action: Settlement Agreement signed
April 14, 2005. Without admitting
liability or fault, RTM Funding, Inc.
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(RTM) agreed to pay a civil money
penalty in the amount of $11,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where RTM: Failed to maintain entire
case file at least two years from date of
insurance endorsement; failed to
implement and maintain a Quality
Control Plan in compliance with HUD/
FHA requirements; and failed to file
annual reports regarding loan activity as
required by Mortgagee Letter 95–3 and
HUD Handbook 4155.1 REV–4 CHG–1.
16. Saxon Equity Mortgage Bankers,
Ltd., Hauppauge, NY [Docket No. 05–
5046–MR]
Action: Settlement Agreement signed
September 13, 2005. Without admitting
liability or fault, Saxon Equity Mortgage
Bankers, Ltd. (Saxon) agreed to pay the
Department a civil money penalty in the
amount of $13,000.
Cause: The Board took this action
because Saxon failed to comply with the
terms of two indemnification
agreements signed with the Department
dated June 13, 1994 and February 28,
2001. Saxon has now entered into an
acceptable payment agreement for
amounts due under the agreements.
17. Susan Mittman Real Estate, Inc.,
Brooklyn, NY [Docket No. 04–4444–
MR]
Action: Settlement Agreement signed
May 11, 2005. Without admitting
liability or fault, Susan Mittman Real
Estate, Inc. (Susan Mittman) agreed to
pay an administrative payment in the
amount of $30,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Susan Mittman: Originated loans
where the borrowers were charged fees
in excess of the one percent allowable
origination fee for services covered by
the origination fee; and failed to
implement and maintain a Quality
Control Plan in compliance with HUD/
FHA requirements.
18. Terra Financial Group, Inc.,
Philadelphia, PA [Docket No. 04–4299–
MR]
Action: Settlement Agreement signed
September 22, 2005. Without admitting
liability or fault, Terra Financial Group,
Inc. (Terra) agreed to pay an
administrative payment in the amount
of $7,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
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where Terra: Failed to ensure that loans
were originated by its employees; failed
to maintain complete loan origination
files; failed to provide evidence that
original documents were reviewed;
failed to file annual reports regarding
loan application activity as required by
Mortgagee Letter 95–3 and HUD
Handbook 4155.1; and failed to
implement and maintain an adequate
Quality Control Plan in compliance
with HUD/FHA requirements.
19. Tucson Mortgage, LLC, Tucson, AZ
[Docket No. 04–4934–MR]
Action: Settlement Agreement signed
September 22, 2005. Without admitting
liability or fault, Tucson Mortgage, LLC
(Tucson) agreed to pay an
administrative payment in the amount
of $45,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Tucson: Allowed an unapproved
branch to originate HUD/FHA-insured
mortgages; provided false documents to
originate a HUD/FHA-insured mortgage;
failed to file loan application reports to
HUD as required by the Mortgagee
Letter 95–3 and HUD Handbook 4155.1
REV–4 CHG 1; failed to perform Quality
Control reviews; and failed to provide
complete loan origination files for
review.
20. United Lending Partners, LP, Irving,
TX [Docket No. 05–5053–MR]
Action: On September 8, 2005, the
Board issued a letter to United Lending
Partners, Ltd., (United Lending)
withdrawing its HUD/FHA approval for
five years. The Board also voted to
impose a civil money penalty in the
amount of $26,000.
Cause: The Board took this action
because United Lending failed to
comply with the terms of agreements
dated June 3, 2003, November 13, 2003
and December 2, 2003 requiring United
Lending to indemnify the Department
on 15 loans.
Dated: December 12, 2005.
Brian D. Montgomery,
Assistant Secretary for Housing—Federal
Housing Commissioner.
[FR Doc. E5–7503 Filed 12–16–05; 8:45 am]
BILLING CODE 4210–27–P
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
Receipt of Applications for Permit
AGENCY:
Fish and Wildlife Service,
Interior.
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18:59 Dec 16, 2005
Jkt 208001
Notice of receipt of applications
for permit.
ACTION:
The public is invited to
comment on the following applications
to conduct certain activities with
endangered species and marine
mammals.
SUMMARY:
Written data, comments or
requests must be received by January 18,
2006.
ADDRESSES: Documents and other
information submitted with these
applications are available for review,
subject to the requirements of the
Privacy Act and Freedom of Information
Act, by any party who submits a written
request for a copy of such documents
within 30 days of the date of publication
of this notice to: U.S. Fish and Wildlife
Service, Division of Management
Authority, 4401 North Fairfax Drive,
Room 700, Arlington, Virginia 22203;
fax 703/358–2281.
FOR FURTHER INFORMATION CONTACT:
Division of Management Authority,
telephone 703/358–2104.
SUPPLEMENTARY INFORMATION:
DATES:
Endangered Species
The public is invited to comment on
the following applications for a permit
to conduct certain activities with
endangered species. This notice is
provided pursuant to section 10(c) of
the Endangered Species Act of 1973, as
amended (16 U.S.C. 1531 et seq.).
Written data, comments, or requests for
copies of these complete applications
should be submitted to the Director
(address above).
PRT–811776
Applicant: Wildlife Conservation
Society, Bronx, NY
The applicant requests re-issuance of
a permit to import feathers dropped
from wild and captive-hatched birds,
which are obtained from various
international institutions and through
collections conducted during field
studies, for the purpose of scientific
research. This notification covers
activities conducted by the applicant
over a five year period.
PRT–110072
Applicant: White Oak Conservation
Center, Yulee, FL
The applicant requests a permit to reimport a male greater Indian one-horn
rhinoceros (Rhinoceros unicornis),
captive bred in the United States, from
Toronto Zoo, Canada, for the purpose of
enhancement of the propagation and
survival of the species.
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PRT–007870
Applicant: National Zoological Park,
Washington, DC
The applicant request reissuance of
their permit for scientific research with
captive-born giant pandas (Ailuropoda
melanoleuca) currently held under loan
agreement with the Government of
China and under provisions of the
USFWS Giant Panda Policy. The
proposed research will cover all aspects
of behavior, reproductive physiology,
genetics, nutrition, and animal health
and is a continuation of activities
currently in progress. This notification
covers activities conducted by the
applicant over a period of five years.
PRT–104625 and 104626
Applicant: J & R Outfitters, Indiantown,
FL
The applicant requests a permit to
authorize interstate and foreign
commerce, export and cull of excess
male barasingha (Cervus duvauceli)
from the captive herd maintained at
their facility for the purpose of
enhancement of the survival of the
species. This notification covers
activities to be conducted by the
applicant over a five year period.
PRT–115344
Applicant: Forrest M. Simpson, Conroe,
TX
The applicant requests a permit to
authorize interstate and foreign
commerce, export and cull of excess
male barasingha (Cervus duvauceli)
from the captive herd maintained at
their facility for the purpose of
enhancement of the survival of the
species. This notification covers
activities to be conducted by the
applicant over a five year period.
PRT–113771
Applicant: Steve E. Payne West,
Acampo, CA
The applicant requests a permit to
import the sport-hunted trophy of one
male bontebok (Damaliscus pygargus
pygargus) culled from a captive herd
maintained under the management
program of the Republic of South Africa,
for the purpose of enhancement of the
survival of the species.
PRT–114470
Applicant: Patricia K. Kehler,
Woodbury, NJ
The applicant requests a permit to
import the sport-hunted trophy of one
male bontebok (Damaliscus pygargus
pygargus) culled from a captive herd
maintained under the management
program of the Republic of South Africa,
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]]>Agencies
[Federal Register Volume 70, Number 242 (Monday, December 19, 2005)]
[Notices]
[Pages 75210-75213]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-7503]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4914-N-07]
Mortgagee Review Board; Administrative Actions
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, Department of Housing and Urban Development (HUD).
ACTION: Notice.
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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 August
25, 2004 to October 18, 2005.
1. Accent Mortgage Services, Inc., Alpharetta, GA [Docket No. 03-3219-
MR]
Action: On September 12, 2005, the Board issued a letter to Accent
Mortgage Services, Inc. (Accent), withdrawing its HUD/FHAapproval for
five years. The Board also voted to impose a civil money penalty in the
amount of $6,500.
Cause: The Board took this action because Accent failed to comply
with the terms of a Settlement Agreement dated March 26, 2004 to pay
civil money penalties to the Department in the amount of $75,000.
2. Alliance Mortgage Banking Corporation, Levittown, NY [Docket No. 04-
4818-MR]
Action: Settlement Agreement signed September 16, 2005. Without
admitting liability or fault, Alliance Mortgage Banking Corporation
(Alliance) agreed to pay an administrative payment in the amount of
$136,775, indemnify HUD on 16 HUD/FHA-insured loans and reimburse 27
HUD/FHA borrowers unallowable charges in the amount of $12,193.
Additionally, Alliance agreed to retain an independent quality control
firm to conduct a quality control review of twenty HUD/FHA loans,
consisting of current and defaulted loans. Based upon the results of
this review, Alliance would submit to HUD a corrective action plan that
addresses the findings of the quality control review and the issues
outlined in the Notice of Violation.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Alliance: Permitted employees to be involved in the processing of
loan applications on loans where they were the seller; used falsified
documentation or conflicting information in originating loans and/or
obtaining HUD/FHA-insured mortgages; failed to resolve discrepancies or
fully obtain and analyze the terms and conditions of the real estate
transaction and consider the acquisition cost of recently acquired
properties in the underwriting of loans; failed to properly verify the
source and/or adequacy of funds for the downpayment and/or closing
costs; failed to properly verify income; failed to limit seller
contributions to the maximum permitted by HUD; failed to ensure timely
completion and/or establish an escrow account for incomplete property
repairs; submitted delinquent loans for mortgage insurance endorsement;
failed to remit Up-Front Mortgage Insurance Premiums within 15 days
from the date of loan closing;
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permitted a borrower to obtain a HUD/FHA loan within three years of a
foreclosed loan; violated HUD/FHA third party origination restrictions;
and failed to ensure borrowers, who had been charged a commitment fee,
executed a Commitment Agreement guaranteeing discount points and/or
interest rates, at least 15 days prior to the date the loan closed.
3. American Union Mortgage, Inc., Ogden, UT [Docket No. 05-5049-MR]
Action: On October 18, 2005, the Board issued a letter to American
Union Mortgage, Inc. (American Union) withdrawing its HUD/FHA approval
for five years. The Board also voted to impose a civil money penalty in
the amount of $6,500.
Cause: The Board took this action because American Union failed to
comply with the terms of a Settlement Agreement with the Department
dated May 14, 2004 to pay civil money penalties to the Department in
the amount of $150,000.
4. Bancplus Home Mortgage Center, Inc., Ft. Lauderdale, FL [Docket No.
04-4450-MR]
Action: Settlement Agreement signed May 24, 2005. Without admitting
liability or fault, Bancplus Home Mortgage Center, Inc. agreed to pay
an administrative payment in the amount of $24,000 and indemnify HUD on
two loans.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Bancplus: Failed to implement a Quality Control Plan in
conformance with HUD/FHA requirements (repeat finding); and failed to
properly document the source and/or adequacy of funds used for the
downpayment and/or closing cost.
5. Costal Capital Corp., Greenvale, NY [Docket No. 04-4384-MR]
Action: Settlement Agreement signed June 7, 2005. Without admitting
liability or fault, Costal Capital Corp. (Costal) agreed to pay a civil
money penalty in the amount of $134,500, indemnify HUD on three loans
and reimburse borrowers for impermissible expenses totaling $7,014.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Costal: Violated third party origination restrictions; improperly
allowed documents to pass through the hands of interested third
parties; certifying falsely on form HUD-92900-A, Part II, Lender
Certification; approved loans where the total origination fees charged
to the borrowers were in excess of one percent; failed to properly
verify the source and adequacy of funds used for the downpayment and/or
closing costs; permitted borrowers to be charged fees that were not
allowable under HUD/FHA requirements; failed to disclose all fees paid
by the borrowers or on their behalf on the HUD-1 Settlement Statement;
and failed to implement and maintain a Quality Control Plan in
compliance with HUD/FHA requirements.
6. De Oro, Inc., Ontario, CA [Docket No. 05-5073-MR]
Action: On September 12, 2005, the Board issued a letter to De Oro,
Inc. (De Oro) withdrawing its HUD/FHA approval for five years. The
Board also voted to impose a civil money penalty in the amount of
$26,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements where De Oro: Failed to comply with the terms
of agreements requiring De Oro to indemnify the Department; failed to
accrue or note a significant contingent liability in HUD's Lender
Assessment Sub-System financial statement submission; misrepresented
its net worth; and provided HUD a false certification.
7. Global Financial Services, Inc., Bethesda, MD [Docket No. 04-4263-
MR]
Action: Settlement Agreement signed September 13, 2005. Global
Financial Services, Inc. (Global) agreed to pay a civil money penalty
in the amount of $62,500 and to immediate withdrawal of Global's HUD/
FHA-approval for four years.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Global: Employed an individual who has been debarred by the
Department; and failed to implement and maintain a Quality Control Plan
in compliance with HUD/FHA requirements.
8. Home Loan Mortgage Corporation, Hesperia, CA [Docket No. 05-5002-MR]
Action: On April 1, 2005, the Board issued a letter to Home Loan
Mortgage Corporation (Home) withdrawing its HUD/FHA-approval for five
years. The Board also voted to impose a civil money penalty in the
amount of $6,500.
Cause: The Board took this action because Home failed to comply
with the terms of the Settlement Agreement executed with the Department
dated May 3, 2001.
9. iMortgage Funding Corporation d/b/a Guaranty Mortgage, Houston, TX
[04-4435-MR]
Action: Settlement Agreement signed May 11, 2005. Without admitting
liability or fault, iMortgage Funding Corporation d/b/a Guaranty
Mortgage (iMortgage), agreed to pay a civil money penalty in the amount
of $379,100 and indemnify HUD on 17 HUD/FHA-insured loans.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where iMortgage: Paid prohibited compensation to employees performing
underwriting duties; failed to remit Upfront Mortgage Insurance
Premiums to HUD/FHA within 15 days of loan closing; failed to adopt and
implement a Quality Control Plan in compliance with HUD/FHA
requirements; used documentation that was falsified and/or contained
unresolved discrepancies; failed to properly verify the source and
adequacy of funds used for the cash requirements and allowed funds for
closing from unacceptable sources; failed to properly document and/or
calculate income used for qualification or to justify loan approval
with excessively high ratios of debt to income; omitted and understated
liabilities, and failed to consider contingent liabilities in loan
qualification; failed to obtain credit reports that met HUD/FHA
requirements; approved mortgagors with unacceptable credit histories,
without adequate justification; approved mortgage loans for ineligible
mortgagors; and failed to document properly or analyze adequately the
credit histories of mortgagors who did not use traditional credit or
who did not have acceptable traditional credit histories.
10. Karim Enterprises, Inc., St. Charles, MO [Docket No. 05-5017-MR]
Action: Settlement Agreement signed July 8, 2005. Without admitting
liability or fault, Karim Enterprises, Inc. (Karim) agreed to pay HUD a
civil money penalty in the amount of $22,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Karim: Loaned gift funds to a donor in HUD/FHA-insured mortgage
transaction; submitted or caused the submission of false information to
HUD in connection with a HUD/FHA-insured mortgage transaction; and
failed to
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implement a Quality Control Plan in conformance with HUD/FHA
requirements.
11. KB Home Mortgage Company, Los Angeles, CA [Docket No. 05-5020-MR]
Action: Settlement Agreement signed June 27, 2005. Without
admitting liability or fault, KB Home Mortgage Company (KB Home) agreed
to pay HUD an administrative payment in the amount of $3,200,000. KB
Home also agreed to prepare and submit a compliance plan acceptable to
HUD that details the policies and procedures KB Home will implement to
rectify the violations of HUD requirements identified in the Notice of
Violation.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where KB Home: Approved loans with ratios exceeding guidelines without
compensating factors or without adequate compensating factors; approved
loans based on effective income that was overstated, improperly
calculated or inadequately documented; failed to include or determine
all of the mortgagor's liabilities and/or liabilities of the non-
purchasing spouse in loan qualification; failed to properly verify the
source and/or adequacy of funds required and/or there were insufficient
funds verified to close; approved loans to borrowers who were not
eligible because of unpaid court-ordered judgments and delinquent
federal debt; approved loans to borrowers who were not eligible because
of past credit performance; failed to address and resolve significant
file discrepancies; failed to ensure property compliance with the
Builder's Certification of Plans, Specifications and Site, HUD form
92541; failed to ensure the mortgagor met the minimum required
investment because the loan exceeded the maximum allowable mortgage
amount; failed to ensure the mortgagor was not charged excessive and/or
unallowable fees and/or there was no documentation supporting the fee;
failed to ensure that the HUD-1 Settlement Statement reflected the
earnest money deposit that was shown on the sales contract and the loan
application; failed to ensure the accuracy of the information contained
in the HUD-1A, Addendum to the HUD-1 Settlement Statement; and failed
to ensure gift letters met HUD requirements.
12. Major Mortgage Corporation, Lathrup Village, MI [Docket No. 05-
5071-MR]
Action: On September 8, 2005, the Board issued a letter to Major
Mortgage Corporation (Major Mortgage) withdrawing its HUD/FHA approval
for five years. The Board also voted to impose a civil money penalty in
the amount of $6,500.
Cause: The Board took this action because Major Mortgage failed to
comply with the terms of a Settlement Agreement dated November 30, 1998
whereby Major Mortgage agreed to indemnify HUD on 15 loans.
13. Megamerica Mortgage Group, Inc., San Antonio, TX [Docket No. 04-
4262-MR]
Action: Settlement Agreement signed April 6, 2005. Without
admitting liability or fault, Megamerica Mortgage Group, Inc.
(Megamerica) agreed to pay an administrative payment in the amount of
$20,500.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Megamerica: Operated branch offices under prohibited branch
arrangements; failed to implement and maintain a Quality Control Plan
in compliance with HUD/FHA requirements; failed to file annual reports
regarding loan application activity required by Mortgagee Letter 95-3
and HUD Handbook 4155.1 REV-4 CHG 1; and charged mortgagors excessive
or prohibited fees.
14. Pike Creek Mortgage Services, Inc., Wilmington, DE [Docket No. 04-
4629-MR]
Action: Settlement Agreement signed September 14, 2005. Without
admitting liability or fault, Pike Creek Mortgage Services, Inc. (Pike
Creek) agreed to pay a civil money penalty in the amount of $19,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Pike Creek: Failed to ensure that loans were originated by its
employees; falsely certified on the HUD/VA Addendum to the Uniform
Residential Loan Application, form HUD-92900-A, Part II Lender
Certification; failed to retain a loan origination file; failed to file
annual reports regarding loan application activity; and failed to
implement and maintain a Quality Control Plan in compliance with HUD/
FHA requirements.
15. RTM Funding, Inc., Kingwood, TX [Docket No. 03-3169-MR]
Action: Settlement Agreement signed April 14, 2005. Without
admitting liability or fault, RTM Funding, Inc. (RTM) agreed to pay a
civil money penalty in the amount of $11,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where RTM: Failed to maintain entire case file at least two years from
date of insurance endorsement; failed to implement and maintain a
Quality Control Plan in compliance with HUD/FHA requirements; and
failed to file annual reports regarding loan activity as required by
Mortgagee Letter 95-3 and HUD Handbook 4155.1 REV-4 CHG-1.
16. Saxon Equity Mortgage Bankers, Ltd., Hauppauge, NY [Docket No. 05-
5046-MR]
Action: Settlement Agreement signed September 13, 2005. Without
admitting liability or fault, Saxon Equity Mortgage Bankers, Ltd.
(Saxon) agreed to pay the Department a civil money penalty in the
amount of $13,000.
Cause: The Board took this action because Saxon failed to comply
with the terms of two indemnification agreements signed with the
Department dated June 13, 1994 and February 28, 2001. Saxon has now
entered into an acceptable payment agreement for amounts due under the
agreements.
17. Susan Mittman Real Estate, Inc., Brooklyn, NY [Docket No. 04-4444-
MR]
Action: Settlement Agreement signed May 11, 2005. Without admitting
liability or fault, Susan Mittman Real Estate, Inc. (Susan Mittman)
agreed to pay an administrative payment in the amount of $30,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Susan Mittman: Originated loans where the borrowers were charged
fees in excess of the one percent allowable origination fee for
services covered by the origination fee; and failed to implement and
maintain a Quality Control Plan in compliance with HUD/FHA
requirements.
18. Terra Financial Group, Inc., Philadelphia, PA [Docket No. 04-4299-
MR]
Action: Settlement Agreement signed September 22, 2005. Without
admitting liability or fault, Terra Financial Group, Inc. (Terra)
agreed to pay an administrative payment in the amount of $7,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
[[Page 75213]]
where Terra: Failed to ensure that loans were originated by its
employees; failed to maintain complete loan origination files; failed
to provide evidence that original documents were reviewed; failed to
file annual reports regarding loan application activity as required by
Mortgagee Letter 95-3 and HUD Handbook 4155.1; and failed to implement
and maintain an adequate Quality Control Plan in compliance with HUD/
FHA requirements.
19. Tucson Mortgage, LLC, Tucson, AZ [Docket No. 04-4934-MR]
Action: Settlement Agreement signed September 22, 2005. Without
admitting liability or fault, Tucson Mortgage, LLC (Tucson) agreed to
pay an administrative payment in the amount of $45,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Tucson: Allowed an unapproved branch to originate HUD/FHA-insured
mortgages; provided false documents to originate a HUD/FHA-insured
mortgage; failed to file loan application reports to HUD as required by
the Mortgagee Letter 95-3 and HUD Handbook 4155.1 REV-4 CHG 1; failed
to perform Quality Control reviews; and failed to provide complete loan
origination files for review.
20. United Lending Partners, LP, Irving, TX [Docket No. 05-5053-MR]
Action: On September 8, 2005, the Board issued a letter to United
Lending Partners, Ltd., (United Lending) withdrawing its HUD/FHA
approval for five years. The Board also voted to impose a civil money
penalty in the amount of $26,000.
Cause: The Board took this action because United Lending failed to
comply with the terms of agreements dated June 3, 2003, November 13,
2003 and December 2, 2003 requiring United Lending to indemnify the
Department on 15 loans.
Dated: December 12, 2005.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E5-7503 Filed 12-16-05; 8:45 am]
BILLING CODE 4210-27-P
