Credit Watch Termination Initiative Termination of Origination Approval Agreements, 4126-4127 [2011-1360]

Download as PDF 4126 Federal Register / Vol. 76, No. 15 / Monday, January 24, 2011 / Notices information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (2) evaluate the accuracy of the agency’s estimate of the burden of the proposed collection of information; (3) enhance the quality, utility, and clarity of the information to be collected; and (4) minimize the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. This Notice also lists the following information: Title of Proposal: Notice of Funding Availability for the Transformation Initiative: Homeless Families Small Grant Research Demonstration Program. OMB Control Number: None. Description of the Need for the Information and Proposed Use: The information is being collected to select applicants for award in this statutorily created competitive grant program and to monitor performance of grantees to ensure they meet statutory and program goals and requirements. Agency Form Numbers: SF–424, SF– 424 Supplemental, HUD–424–CB, SF– Number of respondents LLL, HUD–2880, HUD–2993, HUD– 96010 and HUD–96011. Members of the Affected Public: Institutions of higher education accredited by a national or regional accrediting agency recognized by the U.S. Department of Education are the official applicants. Estimation of the total number of hours needed to prepare the information collection including number of respondents, frequency of response, and hours of response: Information pursuant to grant award will be submitted once a year. The following chart details the respondent burden on a quarterly and annual basis: Total annual responses Hours per response Total hours Applicants ........................................................................................................ Quarterly Reports ............................................................................................ Final Reports ................................................................................................... Recordkeeping ................................................................................................. 15 2 2 2 15 8 2 2 35 6 2 4 525 48 4 8 Total .......................................................................................................... 21 27 54 585 Status of the proposed information collection: Pending OMB approval. Authority: Section 3506 of the Paperwork Reduction Act of 1995, 44 U.S.C. Chapter 35, as amended. Dated: January 13, 2011. Raphael W. Bostic, Assistant Secretary for Policy Development and Research. [FR Doc. 2011–1356 Filed 1–21–11; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR- 5411–N–07] Credit Watch Termination Initiative Termination of Origination Approval Agreements Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice. AGENCY: This notice advises of the cause and effect of termination of Origination Approval Agreements taken by HUD’s Federal Housing Administration (FHA) against HUDapproved 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, mstockstill on DSKH9S0YB1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 15:51 Jan 21, 2011 Jkt 223001 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 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 PO 00000 Frm 00039 Fmt 4703 Sfmt 4703 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 45th 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 branch(es) of the mortgagee from originating FHA-insured singlefamily 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 branch; however, they may be transferred for completion of processing and underwriting to another FHA-insured mortgagee with direct endorsement approval for the area covered by the termination. Mortgagees are obligated to continue to pay existing E:\FR\FM\24JAN1.SGM 24JAN1 4127 Federal Register / Vol. 76, No. 15 / Monday, January 24, 2011 / Notices insurance premiums and meet all other obligations associated with insured mortgages. A terminated mortgagee may apply for reinstatement of the Origination Approval Agreement if the approval for the affected branch or branches 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, 202.8 and 202.12. However, Mortgagee Letter 2010–20 and Final Rule 5356–F–02 at 24 CFR 202 eliminates FHA approval for loan correspondents after December 31, 2010. Therefore, HUD will not accept requests for reinstatement from loan correspondents after that date. 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 name Mortgagee branch office address HUD office jurisdictions Termination effective date Homeownership centers Access Mortgage Services Inc ......................... Anchor Mortgage .............................................. 97 Main St., Ste 209, Woodbridge, NJ 07095 6260 S Rainbow Blvd., Ste 100, Las Vegas, NV 89118. 10724 Baltimore Ave., Beltsville, MD 20705 .... 6230 Orchard Lake Rd., Ste 280, West Bloomfield, MI 48322. 225 Derry Rd., Hudson, NH 03051 .................. 5024 Campbell Blvd., Ste G, Baltimore, MD 21236. 150 Airport Rd., Ste 1100, Lakewood, NJ 08701. 1120 Campus Dr., Morganville, NJ 07751 ....... 1221 Lake Dr., SE., Ste 103, Bessemer, AL 35022. 10500 Kincaid Dr., Ste 300, Fishers, IN 46037 105 S Wheeler St., Ste 300, Plant City, FL 33563. 30 S Stolp Ave., Ste 314, Aurora, IL 60506 .... 4660 Wadsworth Blvd., Wheat Ridge, CO 80033. 24400 Northwestern Hwy., Southfield, MI 48075. 5875 S Rainbow Blvd., Ste 110, Las Vegas, NV 89118. 1911 Rohlwing Rd., Ste A, Rolling Meadows, IL 60008. Newark ......... Las Vegas .... 11/23/2010 ... 11/16/2010 ... Philadelphia Santa Ana Washington .. Detroit .......... 11/15/2010 ... 11/15/2010 ... Philadelphia Philadelphia Bangor ......... Washington .. 11/15/2010 ... 11/15/2010 ... Philadelphia Philadelphia Camden ....... 12/14/2010 ... Philadelphia Camden ....... Birmingham .. 12/14/2010 ... 11/15/2010 ... Philadelphia Atlanta Indianapolis .. Jacksonville .. 11/15/2010 ... 11/15/2010 ... Atlanta Atlanta Chicago ........ Denver ......... 11/15/2010 ... 11/16/2010 ... Atlanta Denver Detroit .......... 11/16/2010 ... Philadelphia Las Vegas .... 11/15/2010 ... Santa Ana Chicago ........ 11/16/2010 ... Atlanta Benefit Funding Corp ........................................ Birmingham Bancorp Mortgage Corp ............... Dedicated Mortgage Associates LLC ............... Equitable Trust Mortgage Corp ........................ Equity Source Home Loans LLC ...................... Equity Source Home Loans LLC ...................... First Performance Mortgage Corp .................... Freedom Mortgage Corp .................................. Homeland Lending Inc ...................................... Metro Finance Corp .......................................... Moncor Inc ........................................................ MVB Mortgage Corp ......................................... Signature One Mortgage Inc ............................ Valor Financial Services LLC ........................... Dated: January 12, 2011. David H. Stevens, Assistant Secretary for Housing—Federal Housing Commissioner. ACTION: BILLING CODE 4210–67–P mstockstill on DSKH9S0YB1PROD with NOTICES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5493–N–01] Mortgage and Loan Insurance Programs Under the National Housing Act—Debenture Interest Rates Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. VerDate Mar<15>2010 15:51 Jan 21, 2011 Jkt 223001 This notice announces changes in the interest rates to be paid on debentures issued with respect to a loan or mortgage insured by the Federal Housing Administration under the provisions of the National Housing Act (the Act). The interest rate for debentures issued under section 221(g)(4) of the Act during the 6-month period beginning January 1, 2011, is 21⁄2 percent. The interest rate for debentures issued under any other provision of the Act is the rate in effect on the date that the commitment to insure the loan or mortgage was issued, or the date that the loan or mortgage was endorsed (or initially endorsed if there are two or more endorsements) for insurance, SUMMARY: [FR Doc. 2011–1360 Filed 1–21–11; 8:45 am] AGENCY: Notice. PO 00000 Frm 00040 Fmt 4703 Sfmt 4703 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 Origination Agreements terminated by HUD: whichever rate is higher. The interest rate for debentures issued under these other provisions with respect to a loan or mortgage committed or endorsed during the 6-month period beginning January 1, 2011, is 37⁄8 percent. However, as a result of an amendment to section 224 of the Act, if an insurance claim relating to a mortgage insured under sections 203 or 234 of the Act and endorsed for insurance after January 23, 2004, is paid in cash, the debenture interest rate for purposes of calculating a claim shall be the monthly average yield, for the month in which the default on the mortgage occurred, on United States Treasury Securities adjusted to a constant maturity of 10 years. E:\FR\FM\24JAN1.SGM 24JAN1

Agencies

[Federal Register Volume 76, Number 15 (Monday, January 24, 2011)]
[Notices]
[Pages 4126-4127]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-1360]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR- 5411-N-07]


Credit Watch Termination Initiative Termination of Origination 
Approval Agreements

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 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 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 45th 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 branch(es) 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 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 branch; however, they may be transferred for completion of 
processing and underwriting to another FHA-insured mortgagee with 
direct endorsement approval for the area covered by the termination. 
Mortgagees are obligated to continue to pay existing

[[Page 4127]]

insurance premiums and meet all other obligations associated with 
insured mortgages.
    A terminated mortgagee may apply for reinstatement of the 
Origination Approval Agreement if the approval for the affected branch 
or branches 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, 202.8 and 202.12. However, 
Mortgagee Letter 2010-20 and Final Rule 5356-F-02 at 24 CFR 202 
eliminates FHA approval for loan correspondents after December 31, 
2010. Therefore, HUD will not accept requests for reinstatement from 
loan correspondents after that date. 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 Origination 
Agreements terminated by HUD:

----------------------------------------------------------------------------------------------------------------
                                  Mortgagee branch        HUD office          Termination        Homeownership
         Mortgagee name            office address       jurisdictions       effective date          centers
----------------------------------------------------------------------------------------------------------------
Access Mortgage Services Inc...  97 Main St., Ste    Newark.............  11/23/2010........  Philadelphia
                                  209, Woodbridge,
                                  NJ 07095.
Anchor Mortgage................  6260 S Rainbow      Las Vegas..........  11/16/2010........  Santa Ana
                                  Blvd., Ste 100,
                                  Las Vegas, NV
                                  89118.
Benefit Funding Corp...........  10724 Baltimore     Washington.........  11/15/2010........  Philadelphia
                                  Ave., Beltsville,
                                  MD 20705.
Birmingham Bancorp Mortgage      6230 Orchard Lake   Detroit............  11/15/2010........  Philadelphia
 Corp.                            Rd., Ste 280,
                                  West Bloomfield,
                                  MI 48322.
Dedicated Mortgage Associates    225 Derry Rd.,      Bangor.............  11/15/2010........  Philadelphia
 LLC.                             Hudson, NH 03051.
Equitable Trust Mortgage Corp..  5024 Campbell       Washington.........  11/15/2010........  Philadelphia
                                  Blvd., Ste G,
                                  Baltimore, MD
                                  21236.
Equity Source Home Loans LLC...  150 Airport Rd.,    Camden.............  12/14/2010........  Philadelphia
                                  Ste 1100,
                                  Lakewood, NJ
                                  08701.
Equity Source Home Loans LLC...  1120 Campus Dr.,    Camden.............  12/14/2010........  Philadelphia
                                  Morganville, NJ
                                  07751.
First Performance Mortgage Corp  1221 Lake Dr.,      Birmingham.........  11/15/2010........  Atlanta
                                  SE., Ste 103,
                                  Bessemer, AL
                                  35022.
Freedom Mortgage Corp..........  10500 Kincaid Dr.,  Indianapolis.......  11/15/2010........  Atlanta
                                  Ste 300, Fishers,
                                  IN 46037.
Homeland Lending Inc...........  105 S Wheeler St.,  Jacksonville.......  11/15/2010........  Atlanta
                                  Ste 300, Plant
                                  City, FL 33563.
Metro Finance Corp.............  30 S Stolp Ave.,    Chicago............  11/15/2010........  Atlanta
                                  Ste 314, Aurora,
                                  IL 60506.
Moncor Inc.....................  4660 Wadsworth      Denver.............  11/16/2010........  Denver
                                  Blvd., Wheat
                                  Ridge, CO 80033.
MVB Mortgage Corp..............  24400 Northwestern  Detroit............  11/16/2010........  Philadelphia
                                  Hwy., Southfield,
                                  MI 48075.
Signature One Mortgage Inc.....  5875 S Rainbow      Las Vegas..........  11/15/2010........  Santa Ana
                                  Blvd., Ste 110,
                                  Las Vegas, NV
                                  89118.
Valor Financial Services LLC...  1911 Rohlwing Rd.,  Chicago............  11/16/2010........  Atlanta
                                  Ste A, Rolling
                                  Meadows, IL 60008.
----------------------------------------------------------------------------------------------------------------


    Dated: January 12, 2011.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-1360 Filed 1-21-11; 8:45 am]
BILLING CODE 4210-67-P
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