Credit Watch Termination Initiative Termination of Direct Endorsement (DE) Approval, 61165-61166 [2010-24829]

Download as PDF 61165 Federal Register / Vol. 75, No. 191 / Monday, October 4, 2010 / Notices 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 Origination Agreements terminated by HUD: Mortgagee name Mortgagee branch address HUD office jurisdictions Access National Mortgage Corporation. Access National Mortgage Corporation. Access National Mortgage Corporation. Allied Home Mortgage Capital Corporation. 1st Continental Mortgage Inc ....... 1800 Robert Fulton Drive, Ste 350, Reston, VA 20191. 1800 Robert Fulton Drive, Ste 350, Reston, VA 20191. 1800 Robert Fulton Drive, Ste 350, Reston, VA 20191. 6110 Pinemont Drive, Ste 215, Houston, TX 77092. 2691 E. Oakland Park Blvd., Ste 2, Ft. Lauderdale, FL 33306. 7155 Kerr Plaza, Olive Branch, MS 38654 .......... 16201 Trade Zone Ave, Ste 101, Upper Marlboro, MD 20774. 706 East Bell Road, Ste 100, Phoenix, AZ 85022 1600 Route 22, East, Union, NJ 07083 ............... 7061 Columbia Gateway Dr, Ste 110, Columbia, MD 21046. 7061 Columbia Gateway Dr, Ste 110, Columbia, MD 21046. 1651 Ave Ponce De Leon, San Juan, PR 00909 118 Moulton Street East, Ste 2, Decatur, AL 35601. 455 East Main Street, East Dundee, IL 60118 .... 7 Kingsbridge Road, Fairfield, NJ 07004 ............. 900 Stewart Avenue, Garden City, NY 11530 ..... 900 Stewart Avenue, Garden City, NY 11530 ..... 3631 131st Avenue North, Clearwater, FL 33762–4263. 6343 Presidential Gateway, Columbus, OH 43231–7695. 67 Walnut Avenue, Ste 310, Clark, NJ 07066– 1687. 6991 East Camelback Rd., Ste C250, Scottsdale, AZ 85251–2452. 9700 63rd Ave. N Ste 205, Maple Grove, MN 55369. 70 Grand Avenue, River Edge, NJ 07661 ............ Atlanta .............. 7/9/2010 Atlanta. Boston .............. 7/9/2010 Philadelphia. Greensboro ...... 7/9/2010 Atlanta. Baltimore .......... 5/27/2010 Philadelphia. Tampa .............. 5/20/2010 Atlanta. Memphis ........... Washington ...... 5/20/2010 5/20/2010 Atlanta. Philadelphia. Phoenix ............ Newark ............. Washington ...... 5/20/2010 5/20/2010 5/20/2010 Santa Ana. Philadelphia. Philadelphia. Richmond ......... 5/20/2010 Philadelphia. Caribbean ......... Birmingham ...... 5/28/2010 5/28/2010 Atlanta. Atlanta. Chicago ............ Newark ............. Atlanta .............. New Orleans ..... Baltimore .......... 7/9/2010 5/20/2010 7/11/2010 7/11/2010 7/1/2010 Philadelphia. Philadelphia. Atlanta. Denver. Philadelphia. Columbus ......... 5/20/2010 Atlanta. Newark ............. 5/28/2010 Philadelphia. Phoenix ............ 5/28/2010 Santa Ana. Minneapolis ...... 6/1/2010 Denver. Atlanta .............. 7/2/2010 Atlanta. Louisville ........... 6/1/2010 Atlanta. Fort Worth ........ 7/1/2010 Denver. American First Mortgage LLC ...... Amerinet Financial LLC ................ Associated Capital Resources Inc Castle Home Mortgage Corp ....... Dell Franklin Financial LLC .......... Dell Franklin Financial LLC .......... EMI Equity Mortgage INC ............ First Mortgage Group INC ............ Fox Valley Mortgage Group ......... Hanover Funding INC .................. JPMorgan Chase Bank NA .......... JPMorgan Chase Bank NA .......... Key Financial Corporation ............ Midwest Funding Group ............... Mortgage Plus INC ....................... Pacific Coast Mortgage INC ......... Preferred Lending Group LLC ...... Real Estate Mortgage Network, Inc. Residential Mortgage Corp .......... Summit Funding ........................... 1332 Andrea Street, Bowling Green, KY 42104– 3334. 2601 Fair Oaks Boulevard, Sacramento, CA 95864. Dated: September 23, 2010. David H. Stevens, Assistant Secretary for Housing—Federal Housing Commissioner. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT This notice advises of the cause and effect of termination of Direct Endorsement (DE) Approval 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 DE Approval terminated. [Docket No. FR–5411–N–04] FOR FURTHER INFORMATION CONTACT: SUMMARY: [FR Doc. 2010–24827 Filed 10–1–10; 8:45 am] jlentini on DSKJ8SOYB1PROD with NOTICES BILLING CODE 4210–67–P Credit Watch Termination Initiative Termination of Direct Endorsement (DE) Approval Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice. AGENCY: VerDate Mar<15>2010 17:23 Oct 01, 2010 Jkt 223001 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 PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 Termination effective date Homeownership centers Information Relay Service at (800) 877– 8339. 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 HUD published a notice (64 FR 26769), 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 Approval Agreements terminated. On January 21, 2010 HUD issued Mortgagee Letter 2010–03 which advised the extended procedures for SUPPLEMENTARY INFORMATION: E:\FR\FM\04OCN1.SGM 04OCN1 61166 Federal Register / Vol. 75, No. 191 / Monday, October 4, 2010 / Notices terminating Underwriting Authority of Direct Endorsement mortgagees. Termination of Direct Endorsement Approval: Approval of a DE mortgagee by HUD/FHA authorizes the mortgagee to underwrite single family mortgage loans and submit them to FHA for insurance endorsement. The Approval may be terminated on the basis of poor performance of FHA-insured mortgage loans underwritten by the mortgagee. The termination of a mortgagee’s DE Approval 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 DE Approval with any mortgagee having a default and claim rate for loans endorsed within the preceding 24 months that exceeds 300 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 quarterly review period ending December 31, 2009, HUD is terminating the DE Approval of mortgagees whose default and claim rate exceeds both the national rate and 300 percent of the field office rate. Effect: Termination of the DE Approval precludes the mortgagee from underwriting 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 those already underwritten and approved by a DE underwriter, and cases covered by a firm commitment issued by HUD. Cases at earlier stages of processing cannot be submitted for insurance by the terminated mortgagee; however, the cases may be transferred for completion of processing and underwriting to another mortgagee with DE Approval 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 reinstatement of the DE Approval if the DE Approval for the affected area or areas has been terminated for at least six months and the mortgagee continues to be an approved mortgagee meeting the requirements of 24 CFR 202.5, 202.6, 202.7, 202.10 and 202.12. The mortgagee’s application for reinstatement must be in a format prescribed by the Secretary and signed by the mortgagee. In addition, the application must be accompanied by an independent analysis 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 analysis must be prepared by an independent Certified Public Accountant (CPA) qualified to perform audits under Government Auditing Standards as provided by the Government Accountability 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 DE Approvals terminated by HUD: Mortgagee name Mortgagee branch address HUD office jurisdictions Alacrity Lending Co .............................. 2535 E Southlake Blvd., Suite 100, Southlake, TX 76092. 80 Cuttermill Road, Suite 408, Great Neck, NY 11021. 907 Pleasant Valley Avenue, Mount Laurel, NJ 08054. 1722 S Union Avenue, Tacoma, WA 98405 ...... 6775 E Evans Avenue, Denver, CO 80224 ....... 6775 E Evans Avenue, Denver, CO 80224 ....... Fort Worth ............ 7/9/2010 New York .............. 6/24/2010 San Antonio .......... 7/1/2010 Denver. Seattle .................. Houston ................ Kansas City .......... 7/1/2010 7/9/2010 7/9/2010 Santa Ana. Denver. Denver. Cambridge Home Capital LLC ............. Freedom Mortgage Corp ...................... Pierce Commercial Bankk .................... Universal Lending Corp ........................ Universal Lending Corp ........................ Dated: September 23, 2010. David H. Stevens, Assistant Secretary for Housing—Federal Housing Commissioner. [FR Doc. 2010–24829 Filed 10–1–10; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT jlentini on DSKJ8SOYB1PROD with NOTICES [Docket No. FR–5449–D–01] Delegation and Redelegation of Authority for the Office of the Inspector General AGENCY: Office of the Inspector General, HUD. Notice of delegation and redelegation of authority. ACTION: VerDate Mar<15>2010 17:23 Oct 01, 2010 Jkt 223001 This notice updates the delegation of authority of the Office of Inspector General to require by subpoena the production of all information, documents, reports, answers, records, accounts, papers, and other data in any medium (including electronically stored information, as well as any tangible thing) and documentary evidence necessary in the performance of the functions assigned by the Inspector General Act to the Deputy Inspector General, the Assistant Inspectors General, the Deputy Assistant Inspectors General, the Special Agents in Charge, the Regional Inspectors General for Audit, the Director of Inspections and Evaluations, the Directors within the Office of Audit, and the Counsel to the Inspector General. SUMMARY: PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 Termination effective date Homeownership centers Denver. Philadelphia. This notice also redelegates to the above-mentioned officials the authority of the Inspector General to cause the seal of the Department to be affixed to certain documents and to certify that a copy of any book, record, paper, microfilm or other document is a true copy of that in the files of the Department. This notice also delegates the authority to the Deputy Inspector General, the Assistant Inspector General for Investigation, the Deputy Assistant Inspectors General for Investigation, the Special Agents in Charge, and the Counsel to the Inspector General to request information under 5 U.S.C. section 552a(b)(7). DATES: Effective Date: September 27, 2010. E:\FR\FM\04OCN1.SGM 04OCN1

Agencies

[Federal Register Volume 75, Number 191 (Monday, October 4, 2010)]
[Notices]
[Pages 61165-61166]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-24829]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5411-N-04]


Credit Watch Termination Initiative Termination of Direct 
Endorsement (DE) Approval

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 
Direct Endorsement (DE) Approval 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 DE Approval 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 HUD 
published a notice (64 FR 26769), 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 Approval Agreements 
terminated. On January 21, 2010 HUD issued Mortgagee Letter 2010-03 
which advised the extended procedures for

[[Page 61166]]

terminating Underwriting Authority of Direct Endorsement mortgagees.
    Termination of Direct Endorsement Approval: Approval of a DE 
mortgagee by HUD/FHA authorizes the mortgagee to underwrite single 
family mortgage loans and submit them to FHA for insurance endorsement. 
The Approval may be terminated on the basis of poor performance of FHA-
insured mortgage loans underwritten by the mortgagee. The termination 
of a mortgagee's DE Approval 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 DE Approval 
with any mortgagee having a default and claim rate for loans endorsed 
within the preceding 24 months that exceeds 300 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 quarterly 
review period ending December 31, 2009, HUD is terminating the DE 
Approval of mortgagees whose default and claim rate exceeds both the 
national rate and 300 percent of the field office rate.
    Effect: Termination of the DE Approval precludes the mortgagee from 
underwriting 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 those already underwritten and approved by a DE underwriter, and 
cases covered by a firm commitment issued by HUD. Cases at earlier 
stages of processing cannot be submitted for insurance by the 
terminated mortgagee; however, the cases may be transferred for 
completion of processing and underwriting to another mortgagee with DE 
Approval 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 reinstatement of the DE 
Approval if the DE Approval for the affected area or areas has been 
terminated for at least six months and the mortgagee continues to be an 
approved mortgagee meeting the requirements of 24 CFR 202.5, 202.6, 
202.7, 202.10 and 202.12. The mortgagee's application for reinstatement 
must be in a format prescribed by the Secretary and signed by the 
mortgagee. In addition, the application must be accompanied by an 
independent analysis 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 analysis must be prepared by an independent 
Certified Public Accountant (CPA) qualified to perform audits under 
Government Auditing Standards as provided by the Government 
Accountability 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 DE Approvals 
terminated by HUD:

----------------------------------------------------------------------------------------------------------------
                                                                HUD office       Termination     Homeownership
        Mortgagee name            Mortgagee branch address     jurisdictions   effective date       centers
----------------------------------------------------------------------------------------------------------------
Alacrity Lending Co...........  2535 E Southlake Blvd.,      Fort Worth......        7/9/2010  Denver.
                                 Suite 100, Southlake, TX
                                 76092.
Cambridge Home Capital LLC....  80 Cuttermill Road, Suite    New York........       6/24/2010  Philadelphia.
                                 408, Great Neck, NY 11021.
Freedom Mortgage Corp.........  907 Pleasant Valley Avenue,  San Antonio.....        7/1/2010  Denver.
                                 Mount Laurel, NJ 08054.
Pierce Commercial Bankk.......  1722 S Union Avenue,         Seattle.........        7/1/2010  Santa Ana.
                                 Tacoma, WA 98405.
Universal Lending Corp........  6775 E Evans Avenue,         Houston.........        7/9/2010  Denver.
                                 Denver, CO 80224.
Universal Lending Corp........  6775 E Evans Avenue,         Kansas City.....        7/9/2010  Denver.
                                 Denver, CO 80224.
----------------------------------------------------------------------------------------------------------------


    Dated: September 23, 2010.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2010-24829 Filed 10-1-10; 8:45 am]
BILLING CODE 4210-67-P