Credit Watch Termination Initiative; Termination of Direct Endorsement (DE) Approval, 4364-4365 [2011-1527]

Download as PDF 4364 Federal Register / Vol. 76, No. 16 / Tuesday, January 25, 2011 / Notices (1) Pre-Award a. HUD estimates that each applicant spends approximately 7 person-hours to complete the preliminary application phase. Almost all of this time is invested by a researcher, expert, analyst. HUD estimates the mean hourly rate at $30. For 15 applications, the computation is as follows: 15 applications × 7 hours × $30 per hours = $3,150. HUD estimates that each applicant spends approximately 41.25 personhours to complete an application. Almost all of this time is invested by a researcher, expert, analyst. HUD estimates the mean hourly rate at $30. For 10 applications, the computation is as follows: 10 applications × 41.25 hours × $30 per hours = $12,375. (2) Post-Award Number of respondents Description of information collection Responses per year HUD estimates that each grantee will spend approximately 6 hours a year maintaining records. HUD also estimates that each grantee will spend approximately 4 hours a year preparing monitoring reports. Clerical staff and faculty/supervisory staff will share this burden. HUD estimates the applicable hourly rate at $15. The computation is as follow: 2 grantees × 10 hours × $15 an hour = $300. Total annual responses SF424 ............................................................................... Pre-application stage ....................................................... SF424 Supplement .......................................................... HUD 424CB ..................................................................... SFLLL ............................................................................... HUD 2880 (2510–0011) ................................................... HUD 96010 (2535–0114) ................................................. Rating factor 1 ................................................................. Rating factor 2 ................................................................. Rating factor 3 ................................................................. Rating factor 4 ................................................................. Rating factor 5 ................................................................. Subtotal (Application) ....................................................... Quarterly Reports ............................................................. Record keeping ................................................................ 30 30 20 20 20 20 20 20 20 20 20 20 20 5 5 1 1 1 1 1 1 1 1 1 1 1 1 1 4 ........................ 30 30 20 20 20 20 20 20 20 20 20 20 20 20 5 Total .......................................................................... 20 ........................ 10 Status of the proposed information collection: Pending OMB approval. Authority: U.S. Code Title 12, 1701z Research and demonstrations. Dated: January 14, 2011. Raphael W. Bostic, Assistant Secretary for Policy Development and Research. [FR Doc. 2011–1526 Filed 1–24–11; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR-5411–N–08] Credit Watch Termination Initiative; Termination of Direct Endorsement (DE) Approval 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 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. mstockstill on DSKH9S0YB1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 18:40 Jan 24, 2011 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 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 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 FOR FURTHER INFORMATION CONTACT: PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 Hrs per response 0.75 7 0.08 3 0.17 0 3 7 7 7 7 7 49 6 4 Varies Total hours 11.25 105 .8 60 3.4 0 60 140 140 140 140 140 980 120 20 1,120 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 250 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 quarterly review period ending September 30, 2010, HUD is terminating the DE Approval of mortgagees whose default and claim rate exceeds both the national rate and 250 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 E:\FR\FM\25JAN1.SGM 25JAN1 4365 Federal Register / Vol. 76, No. 16 / Tuesday, January 25, 2011 / Notices 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: Termination effective date Homeownership centers Mortgagee Name Mortgagee home office address HUD Office jurisdictions Birmingham Bancorp Mortgage Corp. CMG Mortgage Inc .............. 6230 Orchard Lake Rd., Ste 280 West Bloomfield, MI 48322. 3160 Crow Canyon Rd., Ste 400 San Ramon, CA 94583. 24400 Northwestern Hwy., Southfield, MI 48075. 5301 Village Creek Dr., Ste B, Plano, TX 75093. 6065 Roswell Rd., NE Ste 300, Atlanta, GA 30328. 14750 NW 77th Ct., Ste 313, Hialeah, FL 33016. 12080 Corporate Pkwy., Mequon, WI 53092 ... 12080 Corporate Pkwy., Mequon, WI 53092 ... Detroit ................................. 11/15/10 Philadelphia. Chicago ............................... 12/14/10 Atlanta. Detroit ................................. 11/16/10 Philadelphia. Oklahoma City .................... 11/26/10 Denver. Atlanta ................................. 11/15/10 Atlanta. Miami .................................. 11/15/10 Atlanta. Indianapolis ......................... Chicago ............................... 11/15/10 11/15/10 Atlanta. Atlanta. MVB Mortgage Corp ............ NTFN Inc .............................. Pine State Mortgage Corp ... Popular Mortgage Corp ....... Universal Mortgage Corp ..... Universal Mortgage Corp ..... Dated: January 19, 2011. David H. Stevens, Assistant Secretary for Housing—Federal Housing Commissioner. FOR FURTHER INFORMATION CONTACT: [FR Doc. 2011–1527 Filed 1–24–11; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR Office of the Secretary Renewal of the Trinity River Adaptive Management Working Group Office of the Secretary, Interior. Notice. AGENCY: ACTION: The Secretary of the Interior (Secretary), after consultation with the General Services Administration, has renewed the Trinity River Adaptive Management Working Group (Working Group) for 2 years. The Working Group provides recommendations on all aspects of the implementation of the Trinity River Restoration Program and affords stakeholders the opportunity to give policy, management, and technical input concerning Trinity River restoration efforts. mstockstill on DSKH9S0YB1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 18:40 Jan 24, 2011 Jkt 223001 Randy Brown, Fish and Wildlife Service, 1655 Heindon Road, Arcata, CA 95521; 707–822–7201. SUPPLEMENTARY INFORMATION: The Working Group conducts its operations in accordance with the provisions of the Federal Advisory Committee Act (5 U.S. C. Appendix). It reports to the Trinity River Management Council (TMC) and functions solely as an advisory body. The TMC reports to the Secretary through the Mid-Pacific Regional Director of the Bureau of Reclamation and the Pacific Southwest Regional Director (Region 8) for the Fish and Wildlife Service. The Working Group provides recommendations and advice to the TMC on: (1) The effectiveness of management actions in achieving restoration goals and alternative hypotheses (methods and strategies) for study, (2) the priority for restoration projects, (3) funding priorities, and (4) other components of the Trinity River Restoration Program. Working Group members represent the varied interests associated with the Trinity River Restoration Program. Members are selected from, but not PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 limited to, Trinity County residents, recreational and commercial fishermen, commercial and recreational boaters, power/utility companies, agricultural water users, private and commercial timber producers, ranchers and people with grazing rights/permits, tribes, environmental organizations, and Federal, State, and local agencies with responsibilities in the Trinity River Basin. Members must be senior representatives of their respective constituent groups with knowledge of the Trinity River Restoration Program, including the Adaptive Environmental Assessment and Management Program. We have filed a copy of the Working Group’s charter with the Committee Management Secretariat, General Services Administration; Committee on Environment and Public Works, United States Senate; Committee on Natural Resources, United States House of Representatives; and the Library of Congress. Certification I hereby certify that the Trinity River Adaptive Management Working Group is necessary and is in the public interest E:\FR\FM\25JAN1.SGM 25JAN1

Agencies

[Federal Register Volume 76, Number 16 (Tuesday, January 25, 2011)]
[Notices]
[Pages 4364-4365]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-1527]


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

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5411-N-08]


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 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 250 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 quarterly 
review period ending September 30, 2010, HUD is terminating the DE 
Approval of mortgagees whose default and claim rate exceeds both the 
national rate and 250 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

[[Page 4365]]

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 home office      HUD Office       Termination
        Mortgagee Name                  address           jurisdictions    effective date  Homeownership centers
----------------------------------------------------------------------------------------------------------------
Birmingham Bancorp Mortgage     6230 Orchard Lake Rd.,  Detroit..........        11/15/10  Philadelphia.
 Corp.                           Ste 280 West
                                 Bloomfield, MI 48322.
CMG Mortgage Inc..............  3160 Crow Canyon Rd.,   Chicago..........        12/14/10  Atlanta.
                                 Ste 400 San Ramon, CA
                                 94583.
MVB Mortgage Corp.............  24400 Northwestern      Detroit..........        11/16/10  Philadelphia.
                                 Hwy., Southfield, MI
                                 48075.
NTFN Inc......................  5301 Village Creek      Oklahoma City....        11/26/10  Denver.
                                 Dr., Ste B, Plano, TX
                                 75093.
Pine State Mortgage Corp......  6065 Roswell Rd., NE    Atlanta..........        11/15/10  Atlanta.
                                 Ste 300, Atlanta, GA
                                 30328.
Popular Mortgage Corp.........  14750 NW 77th Ct., Ste  Miami............        11/15/10  Atlanta.
                                 313, Hialeah, FL
                                 33016.
Universal Mortgage Corp.......  12080 Corporate Pkwy.,  Indianapolis.....        11/15/10  Atlanta.
                                 Mequon, WI 53092.
Universal Mortgage Corp.......  12080 Corporate Pkwy.,  Chicago..........        11/15/10  Atlanta.
                                 Mequon, WI 53092.
----------------------------------------------------------------------------------------------------------------


    Dated: January 19, 2011.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-1527 Filed 1-24-11; 8:45 am]
BILLING CODE 4210-67-P
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