Mortgagee Review Board; Administrative Actions, 70883-70885 [E7-24113]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 72, Number 239 (Thursday, December 13, 2007)]
[Notices]
[Pages 70883-70885]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24113]


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

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5157-N-03]


Mortgagee Review Board; Administrative Actions

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

ACTION: Notice.

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

SUMMARY: In compliance with Section 202(c) of the National Housing Act, 
this notice advises of the cause and description of administrative 
actions taken by HUD's Mortgagee Review Board against HUD-approved 
mortgagees.

FOR FURTHER INFORMATION CONTACT: David E. Hintz, Secretary to the 
Mortgagee Review Board, 451 Seventh Street, Room B-133 Portals 200, 
SW., Washington, DC 20410-8000, telephone: (202) 708-3856, extension 
3594. A Telecommunications Device for Hearing- and Speech-Impaired

[[Page 70884]]

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 April 27, 
2007 to August 31, 2007.

1. America's Mortgage Resource, Metairie, LA [Docket No. 06-6031-MR]

    Action: Settlement Agreement signed August 24, 2007. Without 
admitting liability or fault, America's Mortgage Resource agreed to pay 
HUD $64,000. America's Mortgage Resource also agreed that it will not 
approve any HUD/FHA-insured mortgages in which the borrower is 
receiving a gift from a downpayment assistance provider unless that 
provider meets HUD's existing requirements for gift donors, including 
obtaining 501(c)(3) status from the Internal Revenue Service.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements in the origination of HUD/FHA-insured loans 
where America's Mortgage Resource: Failed to ensure that borrowers 
received gift funds from acceptable sources; and failed to adopt a 
Quality Control Plan in accordance with HUD/FHA requirements.

2. Aspen Home Loans, LC, American Fork, UT [Docket No. 06-6028-MR]

    Action: On August 16, 2007, the Board issued a letter to Aspen Home 
Loans, LC (Aspen) immediately withdrawing its HUD/FHA approval for five 
years.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements where Aspen failed to comply with the Board's 
directive. In a letter dated May 14, 2007, the Board put Aspen on a one 
year probation and imposed a $6,500 civil money penalty and, directed 
Aspen to: Provide the Board with Aspen's Senior Management Quality 
Control reports performed for the preceding six months within thirty 
days of Aspen's receipt of the Board's Notice letter; a copy of Aspen's 
current acceptable Quality Control Plan within fifteen days of the 
Aspen's receipt of the Board's Notice letter; and, copies of Aspen's 
Senior Management Quality Control reports for the following calendar 
year, completed quarterly, within thirty days of the end of each 
quarter.

3. Capital Mortgage Associates, LLC, North Haven, CT [Docket No. 07-
7003-MR]

    Action: Settlement Agreement signed August 31, 2007. Without 
admitting liability or fault, Capital Mortgage Associates, LLC 
(Capital) agreed to make an administrative payment to HUD in the amount 
of $22,500. Capital also agreed to refund borrowers unallowable fees 
identified in 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 Capital: Allowed an unapproved branch to originate HUD/FHA loans 
in violation of HUD/FHA requirements; failed to ensure that borrowers 
were not charged unallowable fees; and failed to adopt a Quality 
Control Plan in accordance with HUD/FHA requirements.

4. Citybank, Puyallup, WA [Docket No. 07-7013-MR]

    Action: Settlement Agreement signed August 14, 2007. Without 
admitting liability or fault, Citybank agreed to waive all insurance 
benefits or indemnify HUD on two loans. Citybank also agreed to pay HUD 
an administrative payment in the amount of $17,500.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements in the origination of HUD/FHA-insured loans 
where Citybank: Failed to verify the source of funds for a gift used by 
the borrower to meet his/her minimum investment; failed to ensure that 
borrowers met minimum credit requirements; and failed to reconcile 
discrepancies in appraisals and/or accepted incomplete appraisal 
reports.

5. Davis-Penn Mortgage Company, Houston, TX [Docket No. 07-7005-MR]

    Action: Settlement Agreement signed May 15, 2007. Without admitting 
liability or fault, Davis-Penn Mortgage Company (Davis-Penn) agreed to 
pay HUD an administrative payment in the amount of $83,000.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements in the servicing of HUD/FHA-insured loans where 
Davis-Penn: Failed to report default on two multifamily insured 
mortgage loans; and failed to elect to assign two multifamily insured 
mortgage loans that were in default.

6. Mac-Clair Mortgage Corporation, Flint, MI [Docket No. 07-7017-MR]

    Action: Settlement Agreement signed August 31, 2007. Without 
admitting wrongdoing or fault, Mac-Clair Mortgage Corporation (Mac-
Clair) agreed to pay HUD an administrative payment in the amount of 
$10,000. Mac-Clair also agreed to pay the entire debt owed to HUD on 
five Settlement Agreements in the amount of $915,627.
    Cause: The Board took this action because Mac-Clair failed to 
comply with the terms of the five Settlement Agreements.

7. Pennsylvania Housing Finance Agency, Harrisburg, PA [Docket No. 06-
6022-MR]

    Action: Settlement Agreement signed May 29, 2007. Without admitting 
liability or fault, Pennsylvania Housing Finance Agency (PHFA) agreed 
to pay HUD an administrative payment in the amount of $23,000.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements in the servicing of HUD/FHA-insured loans where 
the PHFA: Failed to report a default in one multifamily insured 
mortgage loan in accordance with HUD/FHA requirements; failed to timely 
elect whether to assign the multifamily insured mortgage loan that was 
in default; and failed to assign the mortgage to HUD within 30 days 
from the date of the election to assign the mortgage to HUD.

8. Synergy Mortgage Corporation, Waco, TX [Docket No. 06-6021-MR]

    Action: Settlement Agreement signed August 14, 2007. Without 
admitting liability or fault, Synergy Mortgage Corporation (Synergy) 
agreed to pay HUD an administrative payment in the amount of $410,000. 
Synergy also agreed that Synergy, Synergy Bank and Premier Bancshares, 
Inc., and any existing or newly created subsidiaries or affiliates of 
these entities shall not seek HUD/FHA approval as mortgagee for a 
period of five years from the effective date of the Settlement 
Agreement.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements in the origination of HUD/FHA-insured loans 
where Synergy: Failed to properly document, and calculate income; 
omitted and understated liabilities for loan qualification; failed to 
properly verify the source and adequacy of funds for the borrower's 
minimum required investment; failed to ensure property

[[Page 70885]]

eligibility for HUD/FHA mortgage insurance; closed loans in excess of 
the maximum allowable amount by failing to consider inducements to 
purchase in computing the mortgage amount and failing to resolve 
conflicting information regarding the sales price; and approved a 
mortgage loan with an excessive debt to income ratio without adequate 
compensating factors.

9. Tranah Asset Management Corporation, San Antonio, TX [Docket No. 06-
6030-MR]

    Action: Settlement Agreement signed April 27, 2007. Without 
admitting liability or fault, Tranah Asset Management Corporation 
(Tranah) agreed to pay HUD an administrative payment in the amount of 
$45,000.
    Cause: The Board took this action based on the following violation 
of HUD/FHA requirements in the origination of HUD/FHA-insured loans 
where Tranah permitted a debarred mortgagee to participate in the HUD/
FHA mortgage insurance program.

10. Wall Street Financial Corporation, Fairfield, NJ [Docket No. 04-
4264-MR]

    Action: Settlement Agreement signed May 17, 2007. Without admitting 
liability or fault, Wall Street Financial Corporation (Wall Street) 
agreed to pay HUD an administrative payment in the amount of $19,500. 
Wall Street also agreed to refund unallowable fees identified in 50 
loans to mortgagors within 30 days of the effective date of the 
Settlement Agreement.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements in the origination of HUD/FHA-insured loans 
where Wall Street: Approved mortgages with debt-to-income ratios that 
exceeded HUD/FHA standards without adequate compensating factors in 
nine mortgages; failed to adequately document the source of funds used 
for the downpayment or closing costs in one mortgage; failed to ensure 
that borrowers whom Wall Street charged a commitment fee, executed a 
Commitment Agreement guaranteeing discount points and/or interest rates 
at least fifteen days prior to closing; and charged unallowable fees 
for title review by an attorney, and/or overcharged for obtaining 
credit reports.

    Dated: December 6, 2007.
Brian D. Montgomery,
Assistant Secretary for Housing--Federal, Housing Commissioner.
[FR Doc. E7-24113 Filed 12-12-07; 8:45 am]
BILLING CODE 4210-67-P