Credit Watch Termination Initiative, 57993-57994 [E6-16183]

Download as PDF Federal Register / Vol. 71, No. 190 / Monday, October 2, 2006 / Notices physical condition of specific project areas or building sites. Accordingly, under 24 CFR 50.19(c)(6), this notice is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). OPERATING COST ADJUSTMENT FACTORS FOR 2007—Continued Percent Executive Order 13132, Federalism This notice does not have federalism implications and does not impose substantial direct compliance costs on State and local governments or preempt State law within the meaning of Executive Order 13132 (entitled ‘‘Federalism’’). Catalog of Federal Domestic Assistance Number The Catalog of Federal Domestic Assistance Number for this program is 14.187. S. DAKOTA .................................. TENNESSEE ................................ TEXAS .......................................... UTAH ............................................ VERMONT .................................... VIRGINIA ...................................... WASHINGTON ............................. W. VIRGINIA ................................ WISCONSIN ................................. WYOMING .................................... PACIFIC ISLANDS ....................... PUERTO RICO ............................. VIRGIN ISLANDS ......................... U.S. AVERAGE ............................ [FR Doc. E6–16182 Filed 9–29–06; 8:45 am] Dated: September 22, 2006. Brian D. Montgomery, Assistant Secretary for Housing-Federal Housing Commissioner. rmajette on PROD1PC67 with NOTICES1 OPERATING COST ADJUSTMENT FACTORS FOR 2007 ALABAMA ..................................... ALASKA ........................................ ARIZONA ...................................... ARKANSAS .................................. CALIFORNIA ................................ COLORADO ................................. CONNECTICUT ............................ DELAWARE .................................. DIST.OF COLUMBIA .................... FLORIDA ...................................... GEORGIA ..................................... HAWAII ......................................... IDAHO .......................................... ILLINOIS ....................................... INDIANA ....................................... IOWA ............................................ KANSAS ....................................... KENTUCKY .................................. LOUISIANA ................................... MAINE .......................................... MARYLAND .................................. MASSACHUSETTS ...................... MICHIGAN .................................... MINNESOTA ................................ MISSISSIPPI ................................ MISSOURI .................................... MONTANA .................................... NEBRASKA .................................. NEVADA ....................................... NEW HAMPSHIRE ....................... NEW JERSEY .............................. NEW MEXICO .............................. NEW YORK .................................. N. CAROLINA ............................... N. DAKOTA .................................. OHIO ............................................. OKLAHOMA ................................. OREGON ...................................... PENNSYLVANIA .......................... RHODE ISLAND ........................... S. CAROLINA ............................... VerDate Aug<31>2005 15:07 Sep 29, 2006 4.9 3.4 5.8 3.2 4.0 3.5 3.1 3.1 4.3 3.4 3.8 2.6 2.0 4.3 BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–4513–N–26] Credit Watch Termination Initiative Office of the Assistant Secretary for Housing—Federal Housing Percent Commissioner, HUD. ACTION: Notice. 3.2 5.6 SUMMARY: This notice advises of the 3.0 cause and effect of termination of 4.1 3.7 Origination Approval Agreements taken 3.6 by HUD’s Federal Housing 6.3 Administration (FHA) against HUD4.4 approved mortgagees through the FHA 3.8 Credit Watch Termination Initiative. 3.9 This notice includes a list of mortgagees 3.8 which have had their Origination 4.4 3.1 Approval Agreements terminated. 4.3 FOR FURTHER INFORMATION CONTACT: The 4.1 Quality Assurance Division, Office of 4.9 Housing, Department of Housing and 3.3 Urban Development, 451 Seventh Street, 3.3 SW., Room B133–P3214, Washington, 4.1 DC 20410–8000; telephone (202) 708– 5.1 4.0 2830 (this is not a toll free number). 5.9 Persons with hearing or speech 4.7 impairments may access that number 4.6 through TTY by calling the Federal 4.0 Information Relay Service at (800) 877– 3.2 8339. 4.0 SUPPLEMENTARY INFORMATION: HUD has 3.9 3.4 the authority to address deficiencies in 4.6 the performance of lenders’ loans as 3.9 provided in HUD’s mortgagee approval 3.4 regulations at 24 CFR 202.3. On May 17, 5.8 1999 (64 FR 26769), HUD published a 3.0 notice on its procedures for terminating 4.7 Origination Approval Agreements with 4.7 FHA lenders and placement of FHA 5.0 3.1 lenders on Credit Watch status (an 3.9 evaluation period). In the May 17, 1999, 6.7 notice, HUD advised that it would 3.1 publish in the Federal Register a list of Jkt 211001 AGENCY: PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 57993 mortgagees, which have had their Origination Approval Agreements terminated. Termination of Origination Approval Agreement: Approval of a mortgagee by HUD/FHA to participate in FHA mortgage insurance programs includes an Origination Approval Agreement (Agreement) between HUD and the mortgagee. Under the Agreement, the mortgagee is authorized to originate single-family mortgage loans and submit them to FHA for insurance endorsement. The Agreement may be terminated on the basis of poor performance of FHA-insured mortgage loans originated by the mortgagee. The termination of a mortgagee’s Agreement is separate and apart from any action taken by HUD’s Mortgagee Review Board under HUD’s regulations at 24 CFR part 25. Cause: HUD’s regulations permit HUD to terminate the Agreement with any mortgagee having a default and claim rate for loans endorsed within the preceding 24 months that exceeds 200 percent of the default and claim rate within the geographic area served by a HUD field office, and also exceeds the national default and claim rate. For the 28th review period, HUD is terminating the Agreement of mortgagees whose default and claim rate exceeds both the national rate and 200 percent of the field office rate. Effect: Termination of the Agreement precludes that branch(s) of the mortgagee from originating FHA-insured single-family mortgages within the area of the HUD field office(s) listed in this notice. Mortgagees authorized to purchase, hold, or service FHA insured mortgages may continue to do so. Loans that closed or were approved before the termination became effective may be submitted for insurance endorsement. Approved loans are (1) those already underwritten and approved by a Direct Endorsement (DE) underwriter employed by an unconditionally approved DE lender and (2) cases covered by a firm commitment issued by HUD. Cases at earlier stages of processing cannot be submitted for insurance by the terminated branch; however, they may be transferred for completion of processing and underwriting to another mortgagee or branch authorized to originate FHA insured mortgages in that area. Mortgagees are obligated to continue to pay existing insurance premiums and meet all other obligations associated with insured mortgages. A terminated mortgagee may apply for a new Origination Approval Agreement if the mortgagee continues to be an approved mortgagee meeting the E:\FR\FM\02OCN1.SGM 02OCN1 57994 Federal Register / Vol. 71, No. 190 / Monday, October 2, 2006 / Notices requirements of 24 CFR 202.5, 202.6, 202.7, 202.8 or 202.10 and 202.12, if there has been no Origination Approval Agreement for at least six months, and if the Secretary determines that the underlying causes for termination have been remedied. To enable the Secretary to ascertain whether the underlying causes for termination have been remedied, a mortgagee applying for a new Origination Approval Agreement must obtain an independent review of the terminated office’s operations as well as its mortgage production, specifically including the FHA-insured mortgages cited in its termination notice. This independent analysis shall identify the underlying cause for the mortgagee’s high default and claim rate. The review must be conducted and issued by an independent Certified Public Accountant (CPA) qualified to perform audits under Government Auditing Standards as provided by the General Accounting Office. The mortgagee must also submit a written corrective action plan to address each of the issues identified in the CPA’s report, along with evidence that the plan has been implemented. The application for a new Agreement should be in the form of a letter, accompanied by the CPA’s report and corrective action plan. The request should be sent to the Director, Office of Lender Activities and Program Compliance, 451 Seventh Street, SW., Room B133–P3214, Washington, DC 20410–8000 or by courier to 490 L’Enfant Plaza, East, SW., Suite 3214, Washington, DC 20024–8000. Action: The following mortgagees have had their Agreements terminated by HUD: Termination effective date Mortgagee name Mortgagee branch address HUD office jurisdictions Alethes LLC ............................ Level I Mortgage Corp ............ 6010 Balcones Dr., #209, Austin, TX 78731 .. 1745 Shea Center Dr., Ste 140, Littleton, CO 80129. San Antonio, TX ..................... Denver, Colorado .................... Dated: September 22, 2006. Brian D. Montgomery, Assistant Secretary for Housing—Federal Housing Commissioner. [FR Doc. E6–16183 Filed 9–29–06; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–4917–N–09] Notice of FHA Debenture Call Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice. rmajette on PROD1PC67 with NOTICES1 AGENCY: SUMMARY: This notice announces a debenture recall of certain Federal Housing Administration (FHA) debentures, in accordance with authority provided in the National Housing Act. FOR FURTHER INFORMATION CONTACT: Darryl Getter, Office of Evaluation, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 2232, Washington, DC 20410; telephone (202) 755–7500, extension 7541. This is not a toll-free number. SUPPLEMENTARY INFORMATION: Pursuant to Sections 204(c) and 207(j) of the National Housing Act, 12 U.S.C. 1710(c) and 1713(j), and in accordance with HUD’s regulations at 24 CFR 203.409 and 207.259(e)(3), the Assistant Secretary for Housing—Federal Housing Commissioner, with the approval of the Secretary of HUD and the Secretary of the Treasury, announces the call of all FHA debentures, with a coupon rate of 6.00 percent or above, except for those VerDate Aug<31>2005 15:07 Sep 29, 2006 Jkt 211001 debentures subject to ‘‘debenture lock agreements,’’ that have been registered on the books of the Bureau of Public Debt, Department of the Treasury, and are, therefore, ‘‘outstanding’’ as of September 30, 2006. The date of the call is January 1, 2007. The debentures will be redeemed at par value plus accrued interest. Interest will cease to accrue on the debentures as of the call date. At redemption, final interest on any called debentures will be paid along with the principal. Payment of final principal and interest due on January 1, 2007, will be made automatically to the registered holder. During the period from the date of this notice to the call date, debentures that are subject to the call may not be used by the mortgagee for a special redemption purchase in payment of a mortgage insurance premium. No transfer of debentures covered by the foregoing call will be made on the books maintained by the Department of the Treasury on or after December 15, 2006. This debenture call does not affect the right of the holder of a debenture to sell or assign the debenture on or after this date. Dated: September 16, 2006. Brian D. Montgomery, Assistant Secretary for Housing—Federal Housing Commissioner. [FR Doc. E6–16185 Filed 9–29–06; 8:45 am] BILLING CODE 4210–67–P PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 7/15/2006 9/1/2006 Homeownership centers Denver. Denver. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–4679–N–12] Multifamily Mortgage Insurance Premiums; Withdrawal of Proposal to Increase MIPs for FY2007 Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Final notice. AGENCY: SUMMARY: HUD issued a notice on June 28, 2006, announcing for public comment, proposed changes in the mortgage insurance premiums (MIP) for Federal Housing Administration (FHA) multifamily mortgage insurance programs whose commitments will be issued or reissued in Fiscal Year (FY) 2007. The notice allowed 30 days for public comment. Approximately 359 comments were received by the comment due date, and the comments, including a letter signed by 121 members of the U.S. House of Representatives and 26 United States Senators, were overwhelmingly opposed to the MIP increases proposed for a number of HUD’s multifamily housing mortgage insurance programs. Based on consideration of the concerns raised in the comments, HUD has decided not to proceed with implementation of the MIP increases for FY 2007. Instead, the FY 2006 MIPs, issued on August 30, 2005, will remain in effect for FY 2007. However, FHA will continue to evaluate alternative pricing strategies to maintain the integrity of the fund and achieve policy goals. DATES: Effective Date: October 1, 2006. E:\FR\FM\02OCN1.SGM 02OCN1

Agencies

[Federal Register Volume 71, Number 190 (Monday, October 2, 2006)]
[Notices]
[Pages 57993-57994]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-16183]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4513-N-26]


Credit Watch Termination Initiative

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This notice advises of the cause and effect of termination of 
Origination Approval Agreements taken by HUD's Federal Housing 
Administration (FHA) against HUD-approved mortgagees through the FHA 
Credit Watch Termination Initiative. This notice includes a list of 
mortgagees which have had their Origination Approval Agreements 
terminated.

FOR FURTHER INFORMATION CONTACT: The Quality Assurance Division, Office 
of Housing, Department of Housing and Urban Development, 451 Seventh 
Street, SW., Room B133-P3214, Washington, DC 20410-8000; telephone 
(202) 708-2830 (this is not a toll free number). Persons with hearing 
or speech impairments may access that number through TTY by calling the 
Federal Information Relay Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: HUD has the authority to address 
deficiencies in the performance of lenders' loans as provided in HUD's 
mortgagee approval regulations at 24 CFR 202.3. On May 17, 1999 (64 FR 
26769), HUD published a notice on its procedures for terminating 
Origination Approval Agreements with FHA lenders and placement of FHA 
lenders on Credit Watch status (an evaluation period). In the May 17, 
1999, notice, HUD advised that it would publish in the Federal Register 
a list of mortgagees, which have had their Origination Approval 
Agreements terminated.
    Termination of Origination Approval Agreement: Approval of a 
mortgagee by HUD/FHA to participate in FHA mortgage insurance programs 
includes an Origination Approval Agreement (Agreement) between HUD and 
the mortgagee. Under the Agreement, the mortgagee is authorized to 
originate single-family mortgage loans and submit them to FHA for 
insurance endorsement. The Agreement may be terminated on the basis of 
poor performance of FHA-insured mortgage loans originated by the 
mortgagee. The termination of a mortgagee's Agreement is separate and 
apart from any action taken by HUD's Mortgagee Review Board under HUD's 
regulations at 24 CFR part 25.
    Cause: HUD's regulations permit HUD to terminate the Agreement with 
any mortgagee having a default and claim rate for loans endorsed within 
the preceding 24 months that exceeds 200 percent of the default and 
claim rate within the geographic area served by a HUD field office, and 
also exceeds the national default and claim rate. For the 28th review 
period, HUD is terminating the Agreement of mortgagees whose default 
and claim rate exceeds both the national rate and 200 percent of the 
field office rate.
    Effect: Termination of the Agreement precludes that branch(s) of 
the mortgagee from originating FHA-insured single-family mortgages 
within the area of the HUD field office(s) listed in this notice. 
Mortgagees authorized to purchase, hold, or service FHA insured 
mortgages may continue to do so.
    Loans that closed or were approved before the termination became 
effective may be submitted for insurance endorsement. Approved loans 
are (1) those already underwritten and approved by a Direct Endorsement 
(DE) underwriter employed by an unconditionally approved DE lender and 
(2) cases covered by a firm commitment issued by HUD. Cases at earlier 
stages of processing cannot be submitted for insurance by the 
terminated branch; however, they may be transferred for completion of 
processing and underwriting to another mortgagee or branch authorized 
to originate FHA insured mortgages in that area. Mortgagees are 
obligated to continue to pay existing insurance premiums and meet all 
other obligations associated with insured mortgages.
    A terminated mortgagee may apply for a new Origination Approval 
Agreement if the mortgagee continues to be an approved mortgagee 
meeting the

[[Page 57994]]

requirements of 24 CFR 202.5, 202.6, 202.7, 202.8 or 202.10 and 202.12, 
if there has been no Origination Approval Agreement for at least six 
months, and if the Secretary determines that the underlying causes for 
termination have been remedied. To enable the Secretary to ascertain 
whether the underlying causes for termination have been remedied, a 
mortgagee applying for a new Origination Approval Agreement must obtain 
an independent review of the terminated office's operations as well as 
its mortgage production, specifically including the FHA-insured 
mortgages cited in its termination notice. This independent analysis 
shall identify the underlying cause for the mortgagee's high default 
and claim rate. The review must be conducted and issued by an 
independent Certified Public Accountant (CPA) qualified to perform 
audits under Government Auditing Standards as provided by the General 
Accounting Office. The mortgagee must also submit a written corrective 
action plan to address each of the issues identified in the CPA's 
report, along with evidence that the plan has been implemented. The 
application for a new Agreement should be in the form of a letter, 
accompanied by the CPA's report and corrective action plan. The request 
should be sent to the Director, Office of Lender Activities and Program 
Compliance, 451 Seventh Street, SW., Room B133-P3214, Washington, DC 
20410-8000 or by courier to 490 L'Enfant Plaza, East, SW., Suite 3214, 
Washington, DC 20024-8000.
    Action: The following mortgagees have had their Agreements 
terminated by HUD:

----------------------------------------------------------------------------------------------------------------
                                                                             Termination
          Mortgagee name             Mortgagee branch        HUD office       effective    Homeownership centers
                                         address           jurisdictions         date
----------------------------------------------------------------------------------------------------------------
Alethes LLC......................  6010 Balcones Dr.,   San Antonio, TX....    7/15/2006  Denver.
                                    209,
                                    Austin, TX 78731.
Level I Mortgage Corp............  1745 Shea Center     Denver, Colorado...     9/1/2006  Denver.
                                    Dr., Ste 140,
                                    Littleton, CO
                                    80129.
----------------------------------------------------------------------------------------------------------------


    Dated: September 22, 2006.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. E6-16183 Filed 9-29-06; 8:45 am]
BILLING CODE 4210-67-P
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