Mortgagee Review Board; Administrative Actions, 37089-37092 [E6-10225]
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Federal Register / Vol. 71, No. 125 / Thursday, June 29, 2006 / Notices
Asthma Regional Council, 95 Berkeley
Street, Boston, MA 02116, $766,355.
Dated: June 12, 2006.
Warren Friedman,
Deputy Director, Office of Healthy Homes and
Lead Hazard Control.
[FR Doc. E6–10224 Filed 6–28–06; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–4914–N–08]
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:
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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, Room B–133 Portals 200, 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 HUDapproved 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
March 14, 2005 to May 16, 2006.
1. ABN Amro Mortgage Group, Inc.,
Ann Arbor, MI [Docket No. 04–4318–
MR]
Action: Settlement Agreement signed
December 30, 2005. Without admitting
wrongdoing or fault, ABN Amro
Mortgage Group, Inc. (ABN Amro)
agreed to pay the United States of
America the sum of $16,850,000. ABN
Amro also agreed not to submit claims
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or cause claims to be submitted to HUD
for any of the 783 mortgage loans
covered in the Settlement Agreement.
Cause: The Board took this action
based on a violation of HUD/FHA
requirements in the origination of HUD/
FHA-insured loans where ABN Amro
made false certifications to HUD on
26,775 FHA-insured mortgages.
2. AMortgage Link, LLC, Memphis, TN
[Docket No. 03–3170–MR]
Action: Settlement Agreement signed
October 20, 2005. Without admitting
liability or fault, AMortgage Link, LLC
(AMortgage Link) agreed to pay HUD an
administrative payment in the amount
of $33,500.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where AMortgage Link: Failed to ensure
that its employees worked exclusively
for AMortgage Link; allowed prohibited
payments to individuals who received
other payments for services related to a
loan transaction; failed to implement
and maintain a Quality Control Plan in
compliance with HUD/FHA
requirements; submitted falsified and
conflicting documentation to obtain
FHA mortgage insurance; and failed to
provide files that originating lenders are
required to maintain.
3. Apreva, Inc., Bellevue, WA [Docket
No. 06–6001–MR]
Action: Settlement Agreement signed
March 3, 2006. Without admitting fault
or liability, Apreva, Inc. (Apreva) and
Apreva’s President agreed: To an
indefinite voluntary withdrawal of its
FHA-approval until it has paid, or
otherwise indemnified HUD for its
losses on thirty-four mortgages; to pay
HUD a civil money penalty in the
amount of $316,000; that Apreva’s
President will not have a controlling
interest (defined as 51% or greater) in
any other FHA-approved mortgage
company during the time Apreva’s
withdrawal is in effect; and if Apreva
fails to make any civil money penalty
payment under the Settlement
Agreement that Apreva’s President will
personally guarantee such payment.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Apreva: Failed to provide
adequate compensating factors to justify
the approval of mortgages with ratios
exceeding HUD/FHA standards; failed
to adequately document employment
income in accordance with HUD/FHA
requirements; failed to properly verify
the source of funds used for the
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37089
downpayment and/or closing costs;
failed to evaluate credit history and/or
explain negative credit information to
ensure compliance with HUD/FHA
credit requirements; approved
mortgages without establishing that the
interest rate buy-down will not have an
adverse effect on the borrower’s ability
to make mortgage payments in
accordance with HUD/FHA
requirements; failed to adequately
explain and/or resolve important file
discrepancies or irregularities; failed to
obtain the borrower’s original signature
on the Uniform Residential Mortgage
Application; improperly allowed the
inclusion of gift funds in its calculation
of cash reserves; falsely certified that
mortgages were eligible for HUD/FHA
mortgage insurance; allowed nonexclusive employees to originate HUD/
FHA-insured mortgages; and failed to
implement and maintain a Quality
Control Plan and review procedures in
compliance with HUD/FHA
requirements.
4. Budget Mortgage Bankers, Ltd., New
Hyde Park, NY [Docket No. 05–5076–
MR]
Action: Settlement Agreement signed
March 6, 2006. Without admitting
liability or fault, Budget Mortgage
Bankers, Ltd. (Budget) agreed to
indemnify HUD for any losses incurred
on 15 HUD/FHA-insured loans and, pay
HUD and administrative payment in the
amount of $238,500.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Budget: Approved more than one
HUD/FHA-insured loan for borrowers
without adequate justification; made
false certifications on the HUD Form
92900–A, Part II, Lender Certification;
failed to ensure that loan amounts did
not exceed the maximum loan-to-value
limits; failed to underwrite the loan in
accordance with HUD/FHA
requirements because it permitted the
use of an appraiser not approved by the
Department; failed to originate and
underwrite streamline refinance loans
in accordance with HUD/FHA
requirements; failed to establish the
source and/or adequacy of funds for the
down payment and/or closing costs;
failed to ensure borrowers met the
minimum credit requirements; failed to
provide and/or verify significant
compensating factors for loans with
back-end ratios that exceeded HUD/
FHA standards; failed to properly verify
and analyze the borrower’s income and/
or stability of employment; failed to
ensure that verifications and other
supporting documents did not pass
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through the hands of an interested third
party; failed to address discrepancies in
documents used to originate HUD/FHA
mortgages; failed to ensure all parties
involved in the transaction were
screened to determine their eligibility to
participate in HUD/FHA’s mortgage
insurance program; failed to ensure that
all required repairs for a property
insured as a Section 203 (k) loan were
completed before the loan was
refinanced into a Section 203(b) loan;
failed to ensure that relevant loan
documents were fully executed;
permitted an employee, who was also a
party to the transaction, to be involved
in processing the loan; and failed to
implement and maintain a Quality
Control Plan in conformance with HUD/
FHA requirements.
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5. Columbia Funding Group, Inc.,
Beaverton, OR [Docket No. 05–5078–
MR]
Action: Settlement Agreement signed
May 1, 2006. Without admitting liability
or fault, Columbia Funding Group, Inc.
(Columbia), agreed to pay HUD an
administrative payment in the amount
of $20,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Columbia: Failed to ensure that
HUD/FHA-insured loans were
originated by employees of Columbia;
falsely certified on the HUD/VA
Addendum to the loan application that
the information was obtained directly
from the borrower by a fulltime
employee or Columbia’s duly
authorized agent; failed to ensure that
employees did not work at other
companies in a related industry;
allowed mortgagors to sign incomplete
or blank documents; failed to retain
complete origination files; failed to
ensure that the person performing
quality control reviews was not
involved in origination functions; and
failed to adopt and maintain a Quality
Control Plan.
6. Discover Mortgage Company,
Vancouver, WA [Docket No. 04–4947–
MR]
Action: Settlement Agreement signed
October 18, 2005. Without admitting
liability or fault, Discover Mortgage
Company (Discover) agreed to pay HUD
an administrative payment in the
amount of $70,000.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Discover: F ailed to adopt and
implement a Quality Control Plan in
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compliance with HUD/FHA
requirements for years 2002 and 2003
(repeat finding); originated HUD/FHAinsured loans from branch offices with
prohibited branch arrangements; and
failed to retain complete loan
origination files in accordance with
HUD/FHA requirements.
7. First Florida State Mortgage
Corporation, Melbourne, FL [Docket
No. 05–5063–MR]
Action: Settlement Agreement signed
March 10, 2006. Without admitting
liability or fault, First Florida State
Mortgage Corporation (First Florida)
agreed to pay HUD an administrative
payment in the amount of $8,500.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where First Florida: Failed to
implement and maintain a Quality
Control Plan in compliance with HUD/
FHA requirements in the year 2004;
violated HUD/FHA third party
origination restrictions in six loans;
made false certifications on the Uniform
Residential Loan application and HUD/
VA Addendum to the Uniform
Residential Loan Application in six
loans; and failed to ensure credit
documents did not pass through the
hands of interested third parties in two
mortgages.
8. First Rate Capital Corporation,
Melville, NY [Docket No. 05–5072–MR]
Action: Settlement Agreement signed
March 21, 2006. Without admitting
liability or fault, First Rate Capital
Corporation (First Rate) agreed to
indemnify HUD for any losses on three
HUD/FHA-insured loans. First Rate also
agreed to pay HUD an administrative
payment in the amount of $109,500.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where First Rate: Used conflicting
information to originate HUD/FHA
insured loans; violated third party
origination restrictions; permitted
individuals who were not exclusive
employees to originate HUD/FHA loans;
signed and falsely certified on the HUD
92900–A, Part II, Lender Certification;
failed to ensure that the borrowers met
the statutory three percent minimum
required investment in the property;
failed to provide evidence that original
verification documents were received
and reviewed; failed to document the
source and/or adequacy of funds for
downpayment and/or closing costs;
failed to properly analyze the borrower’s
credit history to ensure HUD’s
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minimum credit requirements were met;
failed to properly verify the borrower’s
income and/or stable employment
history; failed to ensure that the HUD–
1 Settlement Statement accurately
reflect the loan transaction; failed to
reconcile incongruities in appraisals or
accepted incomplete appraisal reports;
and failed to implement and maintain a
Quality Control Plan in conformance
with HUD requirement.
9. Flagstar Bank, FSB, Troy, MI [Docket
No. 05–5031–MR]
Action: Settlement Agreement signed
January 11, 2006. Without admitting
wrongdoing, liability or fault, Flagstar
Bank, FSB (Flagstar) agreed: To comply
with all of the provisions of the Fair
Housing Act; to resolve all outstanding
issues raised in the Notice of Violation
within thirty days of the effective date
of the Settlement Agreement; and to pay
HUD a civil money penalty in the
amount of $182,000.
Cause: The Board took this action
based on a violation of HUD/FHA
requirements in the origination of HUD/
FHA-insured loans where Flagstar
violated the Fair Housing Act from May
1, 2001 to January 31, 2002 by charging
non-minority borrowers higher fees than
minority borrowers.
10. George Mason Mortgage, LLC,
Fairfax, VA [Docket No. 05–5055–MR]
Action: Settlement Agreement signed
December 1, 2005. Without admitting
liability or fault, George Mason
Mortgage, LLC (George Mason) agreed to
pay HUD an administrative payment in
the amount of $45,000. George Mason
also agreed to indemnify HUD for any
losses on one loan.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where George Mason: Failed to properly
analyze the borrower’s credit history to
ensure minimum credit requirements
were met and conflicting information
was resolved, prior to originating HUD/
FHA-insured loans; failed to adequately
verify and document the source and/or
adequacy of funds used for
downpayment and/or closing costs;
failed to provide evidence that original
verification documents were received
and reviewed; and failed to set up
escrow accounts for the deposit of buydown funds.
11. Greenwich Home Mortgage
Corporation, Cedar Knolls, NJ [Docket
No. 05–5077–MR]
Action: Settlement Agreement signed
March 3, 2006. Without admitting
liability or fault, Greenwich Home
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Mortgage Corporation (Greenwich)
agreed to: Pay HUD an administrative
payment in the amount of $58,000;
indemnify HUD for any losses on five
loans; and refund borrowers excessive
fees on 18 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 Greenwich: Failed to ensure the
borrower was eligible for HUD/FHA
mortgage insurance, with respect to the
intended use of the property and
occupancy status; failed to establish the
source and/or adequacy of funds for the
downpayment and/or costs due at
closing; failed to ensure borrowers met
their minimum required cash
investment; failed to provide significant
compensating factors for loans approved
with fixed payment to income ratios
that exceeded HUD standards; failed to
properly document the borrower’s
income and/or a stable two-year
employment history; failed to maintain
documentation that 203(k) required
repairs were completed in a timely and
satisfactory manner and escrowed funds
were properly disbursed; charged
borrowers fees in excess of the actual
cost for services, without adequate
justification; and the Quality Control
Plan was missing a few compliance
requirements.
12. Home Consultants, Inc., Lake Ariel,
PA [Docket No. 04–4792–MR]
Action: Settlement Agreement signed
March 9, 2006. Without admitting
liability or fault, Home Consultants, Inc.
(HCI) agreed to indemnity HUD for any
losses on 12 loans; refund unallowable
fees identified in 48 loans; and to pay
$1,777.34 to buy-down one loan. Home
also agreed to pay HUD an
administrative payment in the amount
of $81,500.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where HCI: used false and conflicting
information to originate FHA loans;
failed to establish the source and/or
adequacy of funds used for down
payment and/or closing costs; failed to
properly analyze the borrower’s credit
history to ensure HUD’s minimum
credit requirements were met; failed to
properly verify and/or document
effective income; failed to ensure the
loan closed in the same manner as it
was underwritten and approved; failed
to comply with HUD/FHA requirements
concerning contingent liabilities; failed
to ensure borrowers met the minimum
required investment; failed to ensure
that the documents used to approve the
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loans were not handled by an interested
party to the transaction; charged
borrowers fees that are specifically
prohibited by HUD; failed to ensure the
property met minimum property
standards; failed to resolve
discrepancies regarding ownership of
properties before the loans were
submitted to HUD and HCI accepted an
incomplete Uniform Residential
Appraisal Report that did not support
the final value conclusion; and
implemented a Quality Control Plan
that did not contain all elements
required by HUD.
13. Liberty Mortgage Brokers,
Richmond Hill, NY [Docket No. 04–
4370–MR]
Action: Settlement Agreement signed
February 28, 2006. Without admitting
liability or fault, Liberty Mortgage
Brokers (Liberty) agreed to pay HUD an
administrative payment in the amount
of $10,000. Also, Liberty voluntarily
surrendered its FHA approval effective
August 19, 2005 and has agreed not to
re-apply for FHA approval.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Liberty: participated in a scheme
with other lenders to violate HUD
conflict of interest regulations; failed to
file annual reports regarding loan
application activity; failed to maintain
complete loan files; and failed to
implement and maintain an adequate
Quality Control Plan in compliance
with HUD/FHA requirements.
14. Mid-America Mortgage
Corporation, Denver, CO [Docket No.
05–5052–MR]
Action: On March 14, 2005, the Board
issued a letter to Mid-America Mortgage
Corporation (Mid-America) suspending
its FHA approval pending resolution of
the Indictment against Mid-America’s
President.
Cause: The Board took this action
because Mid-America’s President/owner
was indicted in United States District
Court for conspiring with others to
falsify information included in loan
applications submitted to HUD for the
purpose of obtaining mortgage loans
with HUD/FHA mortgage insurance.
15. Moreland Financial Corporation,
Fort Washington, PA [Docket No. 04–
4433-MR]
Action: The Board voted to reject
Moreland Financial Corporation’s
(Moreland) settlement offer of
installment payments and insisted that
Moreland pay $22,000 in administrative
payments in one lump sum.
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37091
Cause: The Board took this action
because Moreland failed to finalize a
settlement previously considered by the
Board.
16. Mortgage Access Corporation d/b/a
Weichert Financial Services, Morris
Plains, NJ [Docket No. 05–5044–MR]
Action: Settlement Agreement signed
December 20, 2005. Mortgage Access
Corporation (Mortgage Access) agreed to
indemnify HUD for any losses incurred
on nine loans. Mortgage Access also
agreed to make an administrative
payment to HUD in the amount of
$53,500.
Caution: The Board took this action
based on the following violations of
HUD/FHA requirements in the
origination of HUD/FHA-insured loans
where Mortgage Access: failed to
properly document the source and/or
adequacy of funds used for the
downpayment and closing costs; failed
to properly document the amount of
reserves used for loan approval; failed to
properly document the borrower’s
employment, income or both; failed to
ensure that verification and other
supporting documents did not pass
through the hands of an interested third
party; failed to resolve discrepancies
between the Uniform Residential
Appraisal Report, the HUD–1
Settlement Statement, and the sales
contract; failed to ensure that the loan
amounts did not exceed the maximum
loan-to-value limits; charged borrowers
unallowable fees; failed to implement
and maintain a Quality Control Plan in
conformance with HUD/FHA
requirements; and failed to retain
complete loan origination files for
review and to comply with HUD’s
requests for documentation.
17. U.S. Mortgage Finance Corporation,
Timonium, MD [Docket No. 04–4227–
MR]
Action: Settlement Agreement signed
March 21, 2006. Without admitting
liability or fault, U.S. Mortgage Finance
Corporation (USMFC) agreed to pay
HUD an administrative payment in the
amount of $72,000. USMFC also agreed
to indemnify HUD for any losses
incurred on five 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 USMFC: allowed its employee to
work for another entity while employed
by USMFC; employed an ineligible loan
officer (a debarred individual) in
violation of HUD/FHA approval
standards; falsely stated on the Uniform
Residential Loan Application (URLA)
that the applications were taken by face-
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to-face interviews by an employee, and
falsely certified on the Addendum to the
URLA; used falsified documentation
and/or conflicting information in
originating loans and obtaining HUD/
FHA mortgage insurance; failed to
follow HUD-required procedures in
calculating maximum mortgage
amounts, thereby insuring HUD/FHA
loans that exceed HUD limits; failed to
follow HUD-required procedures in
cases where a non-profit agency was
providing the down payment assistance
in the form of a gift; and failed to
adequately verify the amount and
stability of effective income.
Dated: June 16, 2006.
Brian D. Montgomery
Assistant Secretary for Housing Federal
Housing Commissioner.
[FR Doc. E6–10225 Filed 6–28–06; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
Draft Environmental Impact Statement
for the Mandan, Hidatsa, Arikara (MHA)
Nation’s Proposed Clean Fuels
Refinery, Fort Berthold Indian
Reservation, Ward County, ND
Bureau of Indian Affairs,
Interior.
ACTION: Notice.
jlentini on PROD1PC65 with NOTICES
AGENCY:
SUMMARY: This notice advises the public
that the Bureau of Indian Affairs (BIA)
as lead agency, with the U.S.
Environmental Protection Agency (EPA)
as co-lead agency, and the Mandan,
Hidatsa and Arikara (MHA) Nation and
the U.S. Army Corps of Engineers as
cooperating agencies, intends to file a
Draft Environmental Impact Statement
(DEIS) with the EPA for the proposed
Clean Fuels Refinery, and that the DEIS
is now available for public review. The
proposed federal actions are: (1) The
taking into trust of 469 acres of fee land
by the BIA in support of the MHA
Nation’s proposal to construct and
operate a clean fuels refinery and
produce buffalo forage; and (2) the
issuance by the EPA of a Clean Water
Act, Draft National Pollutant Discharge
Elimination System Discharge (NPDES)
permit for the discharge of treated
wastewater from the proposed refinery.
This notice also advises the public of
the availability of the Draft NPDES
permit (#ND–0030988) for review, and
announces public hearings on the DEIS
and Draft NPDES permit.
DATES: Written comments on the DEIS
and/or Draft NPDES permit must arrive
by August 29, 2006. The public hearings
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17:03 Jun 28, 2006
Jkt 208001
will be held July 31 through August 4,
2006, from 7 p.m. to 9 p.m., and August
5, 2006 (two meetings), from 10 a.m. to
2 p.m. and from 2 p.m. to 4 p.m. No
hearing will close, however, before all
those who wish to make statements
have been heard.
ADDRESSES: You may mail, hand carry,
or telefax written comments on the DEIS
to William Benjamin, Regional Director,
Great Plains Region, Attn: Diane MannKlager MC 301, Bureau of Indian
Affairs, 115 4th Avenue SE, Aberdeen,
South Dakota 57401, Telefax: 605–226–
7358.
You may mail, hand carry, or telefax
written comments on the Draft NPDES
permit to Bruce Kent, U.S.
Environmental Protection Agency,
Region 8 (8P–W–P), 999 18th St., Suite
300, Denver, Colorado 80202–2466,
Telefax: 303–312–7984.
The addresses for the public hearings
are as follows:
July 31, 2006: Twin Buttes Segment
Office, 79 E. Avenue, NW, Halliday, ND.
August 1, 2006: Ralph Well, Jr.
Memorial Complex, 1620 61st Avenue,
NW, Roseglen, ND.
August 2, 2006: Parshall Veterans
Memorial Community Building, 315
2nd St. SE, Parshall, ND.
August 3, 2006: Mandaree
Community Center, 4th Avenue, NE,
404 Ridge Road, Mandaree, ND.
August 4, 2006: Four Bears Casino,
202 Frontage Road, New Town, ND.
August 5, 2006 (10 a.m.): New Town
North Segment Community Building,
710 East Avenue, New Town, ND.
August 5, 2006 (2 p.m.): Makoti
Pioneer Senior Citizen’s Center, 240
Main Street, Makoti, ND.
The DEIS and Draft NPDES permit are
available for public review at the
following locations:
• Bureau of Indian Affairs, Great
Plains Regional Office, 115 4th Avenue,
SE, Aberdeen, SD.
• Bureau of Indian Affairs, Fort
Berthold Agency. 202 Main Street, New
Town, ND.
• EPA Region 8 Library, 999 18th
Street, 1st Floor, Denver Place Building,
Denver, CO.
• Three Affiliated Tribes, Legal
Department, 404 Frontage Road, New
Town, ND.
• Twin Buttes Segment Office, 79 E.
Avenue, NW., Halliday, ND.
• White Shield Segment Office, 1620
61st Avenue, NW., Roseglen, ND.
• Parshall Segment Office, 315 2nd
Street, SE., Parshall, ND.
• Mandaree Segment Office, 4th
Avenue, NE, 404 Ridge Road, Mandaree,
ND.
• Four Bears Segment Office, 404
Frontage Road, New Town, ND.
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• North Segment Office, 710 East
Avenue, New Town, ND.
• Three Affiliated Tribes, Office of
the Secretary, 404 Frontage Road, New
Town, ND.
The DEIS and Draft NPDES permit are
also available on the following Web
sites:
https://www.epa.gov/region8/
compliance/nepa and https://
www.MHANation.com.
If you would like to obtain a copy of
the DEIS and/or Draft NPDES permit,
please write to Diane Mann-Klager at
the address provided above for the BIA
Great Plains Regional Office, or to
Monica Morales, EPA Region 8, 999
18th Street, Suite 300, Denver, CO
80202–2466, or call the corresponding
numbers provided below. Copies of the
NPDES permit application as well as an
accompanying Fact Sheet are also
available upon request at the above EPA
address. The administrative record for
the NPDES permit, which includes data
submitted by the applicant, is located at,
and available upon request from this
same EPA address.
FOR FURTHER INFORMATION CONTACT:
Requests for information on the DEIS
should be directed to Diane MannKlager, 605–226–7621 or Monica
Morales, 303–312–6936 or 800–227–
8917. You may request information on
the Draft NPDES permits from Bruce
Kent, 303–312–6133.
SUPPLEMENTARY INFORMATION: On
February 5, 2003, the Three Affiliated
Tribes Business Council, representing
the MHA Nation, voted to purchase
three tracts of land in the northeast
corner of the Fort Berthold Indian
Reservation. These tracts are located
along Highway 23, four miles west of
the town of Makoti in Ward County,
North Dakota. The tracts include the
NW 1⁄4 of Section 20, Township 152
North, Range 87 West (Tract 1); the
North 1⁄2 of Section 19, Township 152
North, Range 87 West (Tract 2); and
Outlot 1 in the NE 1⁄4 of Section 19,
Township 152 North, Range 87 West
(Tract 3). Taken together as a single
parcel, these tracts encompass almost
469 acres. Following the purchase, the
MHA Nation requested that the
Department of the Interior, BIA, accept
the tracts into trust status. The Indian
Reorganization Act of 1935 authorizes
the Secretary of the Interior to hold land
for Indian Tribes and individual Indians
in trust.
The MHA Nation proposes to use the
469 acres for two purposes. First, it
would construct, own, operate, and
maintain a clean fuels refinery on 190
acres of the 469-acre parcel. Second, it
would grow forage for buffalo on the
E:\FR\FM\29JNN1.SGM
29JNN1
]]>Agencies
[Federal Register Volume 71, Number 125 (Thursday, June 29, 2006)]
[Notices]
[Pages 37089-37092]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-10225]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4914-N-08]
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, Room B-133 Portals 200,
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 March 14,
2005 to May 16, 2006.
1. ABN Amro Mortgage Group, Inc., Ann Arbor, MI [Docket No. 04-4318-MR]
Action: Settlement Agreement signed December 30, 2005. Without
admitting wrongdoing or fault, ABN Amro Mortgage Group, Inc. (ABN Amro)
agreed to pay the United States of America the sum of $16,850,000. ABN
Amro also agreed not to submit claims or cause claims to be submitted
to HUD for any of the 783 mortgage loans covered in the Settlement
Agreement.
Cause: The Board took this action based on a violation of HUD/FHA
requirements in the origination of HUD/FHA-insured loans where ABN Amro
made false certifications to HUD on 26,775 FHA-insured mortgages.
2. AMortgage Link, LLC, Memphis, TN [Docket No. 03-3170-MR]
Action: Settlement Agreement signed October 20, 2005. Without
admitting liability or fault, AMortgage Link, LLC (AMortgage Link)
agreed to pay HUD an administrative payment in the amount of $33,500.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where AMortgage Link: Failed to ensure that its employees worked
exclusively for AMortgage Link; allowed prohibited payments to
individuals who received other payments for services related to a loan
transaction; failed to implement and maintain a Quality Control Plan in
compliance with HUD/FHA requirements; submitted falsified and
conflicting documentation to obtain FHA mortgage insurance; and failed
to provide files that originating lenders are required to maintain.
3. Apreva, Inc., Bellevue, WA [Docket No. 06-6001-MR]
Action: Settlement Agreement signed March 3, 2006. Without
admitting fault or liability, Apreva, Inc. (Apreva) and Apreva's
President agreed: To an indefinite voluntary withdrawal of its FHA-
approval until it has paid, or otherwise indemnified HUD for its losses
on thirty-four mortgages; to pay HUD a civil money penalty in the
amount of $316,000; that Apreva's President will not have a controlling
interest (defined as 51% or greater) in any other FHA-approved mortgage
company during the time Apreva's withdrawal is in effect; and if Apreva
fails to make any civil money penalty payment under the Settlement
Agreement that Apreva's President will personally guarantee such
payment.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Apreva: Failed to provide adequate compensating factors to
justify the approval of mortgages with ratios exceeding HUD/FHA
standards; failed to adequately document employment income in
accordance with HUD/FHA requirements; failed to properly verify the
source of funds used for the downpayment and/or closing costs; failed
to evaluate credit history and/or explain negative credit information
to ensure compliance with HUD/FHA credit requirements; approved
mortgages without establishing that the interest rate buy-down will not
have an adverse effect on the borrower's ability to make mortgage
payments in accordance with HUD/FHA requirements; failed to adequately
explain and/or resolve important file discrepancies or irregularities;
failed to obtain the borrower's original signature on the Uniform
Residential Mortgage Application; improperly allowed the inclusion of
gift funds in its calculation of cash reserves; falsely certified that
mortgages were eligible for HUD/FHA mortgage insurance; allowed non-
exclusive employees to originate HUD/FHA-insured mortgages; and failed
to implement and maintain a Quality Control Plan and review procedures
in compliance with HUD/FHA requirements.
4. Budget Mortgage Bankers, Ltd., New Hyde Park, NY [Docket No. 05-
5076-MR]
Action: Settlement Agreement signed March 6, 2006. Without
admitting liability or fault, Budget Mortgage Bankers, Ltd. (Budget)
agreed to indemnify HUD for any losses incurred on 15 HUD/FHA-insured
loans and, pay HUD and administrative payment in the amount of
$238,500.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Budget: Approved more than one HUD/FHA-insured loan for borrowers
without adequate justification; made false certifications on the HUD
Form 92900-A, Part II, Lender Certification; failed to ensure that loan
amounts did not exceed the maximum loan-to-value limits; failed to
underwrite the loan in accordance with HUD/FHA requirements because it
permitted the use of an appraiser not approved by the Department;
failed to originate and underwrite streamline refinance loans in
accordance with HUD/FHA requirements; failed to establish the source
and/or adequacy of funds for the down payment and/or closing costs;
failed to ensure borrowers met the minimum credit requirements; failed
to provide and/or verify significant compensating factors for loans
with back-end ratios that exceeded HUD/FHA standards; failed to
properly verify and analyze the borrower's income and/or stability of
employment; failed to ensure that verifications and other supporting
documents did not pass
[[Page 37090]]
through the hands of an interested third party; failed to address
discrepancies in documents used to originate HUD/FHA mortgages; failed
to ensure all parties involved in the transaction were screened to
determine their eligibility to participate in HUD/FHA's mortgage
insurance program; failed to ensure that all required repairs for a
property insured as a Section 203 (k) loan were completed before the
loan was refinanced into a Section 203(b) loan; failed to ensure that
relevant loan documents were fully executed; permitted an employee, who
was also a party to the transaction, to be involved in processing the
loan; and failed to implement and maintain a Quality Control Plan in
conformance with HUD/FHA requirements.
5. Columbia Funding Group, Inc., Beaverton, OR [Docket No. 05-5078-MR]
Action: Settlement Agreement signed May 1, 2006. Without admitting
liability or fault, Columbia Funding Group, Inc. (Columbia), agreed to
pay HUD an administrative payment in the amount of $20,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Columbia: Failed to ensure that HUD/FHA-insured loans were
originated by employees of Columbia; falsely certified on the HUD/VA
Addendum to the loan application that the information was obtained
directly from the borrower by a fulltime employee or Columbia's duly
authorized agent; failed to ensure that employees did not work at other
companies in a related industry; allowed mortgagors to sign incomplete
or blank documents; failed to retain complete origination files; failed
to ensure that the person performing quality control reviews was not
involved in origination functions; and failed to adopt and maintain a
Quality Control Plan.
6. Discover Mortgage Company, Vancouver, WA [Docket No. 04-4947-MR]
Action: Settlement Agreement signed October 18, 2005. Without
admitting liability or fault, Discover Mortgage Company (Discover)
agreed to pay HUD an administrative payment in the amount of $70,000.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Discover: F ailed to adopt and implement a Quality Control Plan
in compliance with HUD/FHA requirements for years 2002 and 2003 (repeat
finding); originated HUD/FHA-insured loans from branch offices with
prohibited branch arrangements; and failed to retain complete loan
origination files in accordance with HUD/FHA requirements.
7. First Florida State Mortgage Corporation, Melbourne, FL [Docket No.
05-5063-MR]
Action: Settlement Agreement signed March 10, 2006. Without
admitting liability or fault, First Florida State Mortgage Corporation
(First Florida) agreed to pay HUD an administrative payment in the
amount of $8,500.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where First Florida: Failed to implement and maintain a Quality Control
Plan in compliance with HUD/FHA requirements in the year 2004; violated
HUD/FHA third party origination restrictions in six loans; made false
certifications on the Uniform Residential Loan application and HUD/VA
Addendum to the Uniform Residential Loan Application in six loans; and
failed to ensure credit documents did not pass through the hands of
interested third parties in two mortgages.
8. First Rate Capital Corporation, Melville, NY [Docket No. 05-5072-MR]
Action: Settlement Agreement signed March 21, 2006. Without
admitting liability or fault, First Rate Capital Corporation (First
Rate) agreed to indemnify HUD for any losses on three HUD/FHA-insured
loans. First Rate also agreed to pay HUD an administrative payment in
the amount of $109,500.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where First Rate: Used conflicting information to originate HUD/FHA
insured loans; violated third party origination restrictions; permitted
individuals who were not exclusive employees to originate HUD/FHA
loans; signed and falsely certified on the HUD 92900-A, Part II, Lender
Certification; failed to ensure that the borrowers met the statutory
three percent minimum required investment in the property; failed to
provide evidence that original verification documents were received and
reviewed; failed to document the source and/or adequacy of funds for
downpayment and/or closing costs; failed to properly analyze the
borrower's credit history to ensure HUD's minimum credit requirements
were met; failed to properly verify the borrower's income and/or stable
employment history; failed to ensure that the HUD-1 Settlement
Statement accurately reflect the loan transaction; failed to reconcile
incongruities in appraisals or accepted incomplete appraisal reports;
and failed to implement and maintain a Quality Control Plan in
conformance with HUD requirement.
9. Flagstar Bank, FSB, Troy, MI [Docket No. 05-5031-MR]
Action: Settlement Agreement signed January 11, 2006. Without
admitting wrongdoing, liability or fault, Flagstar Bank, FSB (Flagstar)
agreed: To comply with all of the provisions of the Fair Housing Act;
to resolve all outstanding issues raised in the Notice of Violation
within thirty days of the effective date of the Settlement Agreement;
and to pay HUD a civil money penalty in the amount of $182,000.
Cause: The Board took this action based on a violation of HUD/FHA
requirements in the origination of HUD/FHA-insured loans where Flagstar
violated the Fair Housing Act from May 1, 2001 to January 31, 2002 by
charging non-minority borrowers higher fees than minority borrowers.
10. George Mason Mortgage, LLC, Fairfax, VA [Docket No. 05-5055-MR]
Action: Settlement Agreement signed December 1, 2005. Without
admitting liability or fault, George Mason Mortgage, LLC (George Mason)
agreed to pay HUD an administrative payment in the amount of $45,000.
George Mason also agreed to indemnify HUD for any losses on one loan.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where George Mason: Failed to properly analyze the borrower's credit
history to ensure minimum credit requirements were met and conflicting
information was resolved, prior to originating HUD/FHA-insured loans;
failed to adequately verify and document the source and/or adequacy of
funds used for downpayment and/or closing costs; failed to provide
evidence that original verification documents were received and
reviewed; and failed to set up escrow accounts for the deposit of buy-
down funds.
11. Greenwich Home Mortgage Corporation, Cedar Knolls, NJ [Docket No.
05-5077-MR]
Action: Settlement Agreement signed March 3, 2006. Without
admitting liability or fault, Greenwich Home
[[Page 37091]]
Mortgage Corporation (Greenwich) agreed to: Pay HUD an administrative
payment in the amount of $58,000; indemnify HUD for any losses on five
loans; and refund borrowers excessive fees on 18 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 Greenwich: Failed to ensure the borrower was eligible for HUD/FHA
mortgage insurance, with respect to the intended use of the property
and occupancy status; failed to establish the source and/or adequacy of
funds for the downpayment and/or costs due at closing; failed to ensure
borrowers met their minimum required cash investment; failed to provide
significant compensating factors for loans approved with fixed payment
to income ratios that exceeded HUD standards; failed to properly
document the borrower's income and/or a stable two-year employment
history; failed to maintain documentation that 203(k) required repairs
were completed in a timely and satisfactory manner and escrowed funds
were properly disbursed; charged borrowers fees in excess of the actual
cost for services, without adequate justification; and the Quality
Control Plan was missing a few compliance requirements.
12. Home Consultants, Inc., Lake Ariel, PA [Docket No. 04-4792-MR]
Action: Settlement Agreement signed March 9, 2006. Without
admitting liability or fault, Home Consultants, Inc. (HCI) agreed to
indemnity HUD for any losses on 12 loans; refund unallowable fees
identified in 48 loans; and to pay $1,777.34 to buy-down one loan. Home
also agreed to pay HUD an administrative payment in the amount of
$81,500.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where HCI: used false and conflicting information to originate FHA
loans; failed to establish the source and/or adequacy of funds used for
down payment and/or closing costs; failed to properly analyze the
borrower's credit history to ensure HUD's minimum credit requirements
were met; failed to properly verify and/or document effective income;
failed to ensure the loan closed in the same manner as it was
underwritten and approved; failed to comply with HUD/FHA requirements
concerning contingent liabilities; failed to ensure borrowers met the
minimum required investment; failed to ensure that the documents used
to approve the loans were not handled by an interested party to the
transaction; charged borrowers fees that are specifically prohibited by
HUD; failed to ensure the property met minimum property standards;
failed to resolve discrepancies regarding ownership of properties
before the loans were submitted to HUD and HCI accepted an incomplete
Uniform Residential Appraisal Report that did not support the final
value conclusion; and implemented a Quality Control Plan that did not
contain all elements required by HUD.
13. Liberty Mortgage Brokers, Richmond Hill, NY [Docket No. 04-4370-MR]
Action: Settlement Agreement signed February 28, 2006. Without
admitting liability or fault, Liberty Mortgage Brokers (Liberty) agreed
to pay HUD an administrative payment in the amount of $10,000. Also,
Liberty voluntarily surrendered its FHA approval effective August 19,
2005 and has agreed not to re-apply for FHA approval.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements in the origination of HUD/FHA-insured loans
where Liberty: participated in a scheme with other lenders to violate
HUD conflict of interest regulations; failed to file annual reports
regarding loan application activity; failed to maintain complete loan
files; and failed to implement and maintain an adequate Quality Control
Plan in compliance with HUD/FHA requirements.
14. Mid-America Mortgage Corporation, Denver, CO [Docket No. 05-5052-
MR]
Action: On March 14, 2005, the Board issued a letter to Mid-America
Mortgage Corporation (Mid-America) suspending its FHA approval pending
resolution of the Indictment against Mid-America's President.
Cause: The Board took this action because Mid-America's President/
owner was indicted in United States District Court for conspiring with
others to falsify information included in loan applications submitted
to HUD for the purpose of obtaining mortgage loans with HUD/FHA
mortgage insurance.
15. Moreland Financial Corporation, Fort Washington, PA [Docket No. 04-
4433-MR]
Action: The Board voted to reject Moreland Financial Corporation's
(Moreland) settlement offer of installment payments and insisted that
Moreland pay $22,000 in administrative payments in one lump sum.
Cause: The Board took this action because Moreland failed to
finalize a settlement previously considered by the Board.
16. Mortgage Access Corporation d/b/a Weichert Financial Services,
Morris Plains, NJ [Docket No. 05-5044-MR]
Action: Settlement Agreement signed December 20, 2005. Mortgage
Access Corporation (Mortgage Access) agreed to indemnify HUD for any
losses incurred on nine loans. Mortgage Access also agreed to make an
administrative payment to HUD in the amount of $53,500.
Caution: The Board took this action based on the following
violations of HUD/FHA requirements in the origination of HUD/FHA-
insured loans where Mortgage Access: failed to properly document the
source and/or adequacy of funds used for the downpayment and closing
costs; failed to properly document the amount of reserves used for loan
approval; failed to properly document the borrower's employment, income
or both; failed to ensure that verification and other supporting
documents did not pass through the hands of an interested third party;
failed to resolve discrepancies between the Uniform Residential
Appraisal Report, the HUD-1 Settlement Statement, and the sales
contract; failed to ensure that the loan amounts did not exceed the
maximum loan-to-value limits; charged borrowers unallowable fees;
failed to implement and maintain a Quality Control Plan in conformance
with HUD/FHA requirements; and failed to retain complete loan
origination files for review and to comply with HUD's requests for
documentation.
17. U.S. Mortgage Finance Corporation, Timonium, MD [Docket No. 04-
4227-MR]
Action: Settlement Agreement signed March 21, 2006. Without
admitting liability or fault, U.S. Mortgage Finance Corporation (USMFC)
agreed to pay HUD an administrative payment in the amount of $72,000.
USMFC also agreed to indemnify HUD for any losses incurred on five
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 USMFC: allowed its employee to work for another entity while
employed by USMFC; employed an ineligible loan officer (a debarred
individual) in violation of HUD/FHA approval standards; falsely stated
on the Uniform Residential Loan Application (URLA) that the
applications were taken by face-
[[Page 37092]]
to-face interviews by an employee, and falsely certified on the
Addendum to the URLA; used falsified documentation and/or conflicting
information in originating loans and obtaining HUD/FHA mortgage
insurance; failed to follow HUD-required procedures in calculating
maximum mortgage amounts, thereby insuring HUD/FHA loans that exceed
HUD limits; failed to follow HUD-required procedures in cases where a
non-profit agency was providing the down payment assistance in the form
of a gift; and failed to adequately verify the amount and stability of
effective income.
Dated: June 16, 2006.
Brian D. Montgomery
Assistant Secretary for Housing Federal Housing Commissioner.
[FR Doc. E6-10225 Filed 6-28-06; 8:45 am]
BILLING CODE 4210-67-P
