Credit Watch Termination Initiative; Termination of Direct Endorsement (DE) Approval, 38407-38408 [2011-16489]

Download as PDF 38407 Federal Register / Vol. 76, No. 126 / Thursday, June 30, 2011 / Notices 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 quarterly review period ending December 31, 2010, 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 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 Part 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 name Mortgagee branch office address HUD office jurisdictions Equity Source Home Loans LLC .............. 1120 Campus Drive West Morganville, NJ 07751. 6100 Rockside Woods Blvd., Ste 1 Independence, OH 44131. G4355 S Saginaw St., Burton, MI 48529 Newark ............. 6/1/2011 Philadelphia. Cleveland .......... 6/21/11 Philadelphia. Detroit ............... 4/26/11 Philadelphia. First Ohio Banc and Lending, Inc ............. Mac-Clair Mortgage Corp ......................... Dated: June 22, 2011. Robert C. Ryan, Acting 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–5511–N–04] FOR FURTHER INFORMATION CONTACT: SUMMARY: [FR Doc. 2011–16518 Filed 6–29–11; 8:45 am] srobinson on DSK4SPTVN1PROD 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 16:24 Jun 29, 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 PO 00000 Frm 00060 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\30JNN1.SGM 30JNN1 38408 Federal Register / Vol. 76, No. 126 / Thursday, June 30, 2011 / 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 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 quarterly review period ending December 31, 2010, HUD is terminating the DE Approval of mortgagees whose default and claim rate exceeds both the national rate and 200 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 home office address HUD office jurisdictions Termination effective date Dover Mortgage Company. First Ohio Banc and Lending, Inc.. 711 E Morehead Street, Charlotte, NC 28202. 6100 Rockside Woods Blvd., Ste. 1, Independence, OH 44131. 6100 Rockside Woods Blvd., Ste. 1, Independence, OH 44131. G4355 S Saginaw St., Burton, MI 48529. G4355 S Saginaw St., Burton, MI 48529. Knoxville ..................................... 4/26/11 ........ Atlanta. Atlanta ......................................... 6/21/11 ........ Philadelphia. Cleveland .................................... 6/21/11 ........ Philadelphia. Detroit ......................................... 4/26/11 ........ Philadelphia. Flint ............................................. 4/26/11 ........ Philadelphia. First Ohio Banc and Lending, Inc.. Mac-Clair Mortgage Corp.. Mac-Clair Mortgage Corp.. Dated: June 22, 2011. Robert C. Ryan, Acting Assistant Secretary for Housing— Federal Housing Commissioner. ACTION: BILLING CODE 4210–67–P srobinson on DSK4SPTVN1PROD with NOTICES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5500–N–18 Notice of Funding Availability (NOFA) for HUD’s Fiscal Year 2011 HOPE VI Main Street Grants Office of the Chief of the Human Capital Officer, HUD. VerDate Mar<15>2010 16:24 Jun 29, 2011 Jkt 223001 HUD announces the availability on its Web site and http:// www.Grants.gov of the applicant information, submission deadlines, funding criteria, and other requirements for HUD’s FY2011 HOPE VI Main Street Grants NOFA. Specifically, this NOFA announces the availability of approximately $500,000 made available under the Department of Defense and Full-Year Continuing Appropriations Act, 2011, Public Law 112–10, approved April 15, 2011. The purpose of the Main Street Grants program is to provide grants to small communities to assist in the SUMMARY: [FR Doc. 2011–16489 Filed 6–29–11; 8:45 am] AGENCY: Notice. PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 Homeownership centers rejuvenation of an historic or traditional central business district or ‘‘Main Street’’ area by replacing unused commercial space in buildings with affordable housing units. The objectives of the program are to: 1. Redevelop Main Street areas; 2. Preserve historic or traditional architecture or design features in Main Street areas; 3. Enhance economic development efforts in Main Street areas; and 4. Provide affordable housing in Main Street areas. The notice providing information regarding the application process, funding criteria and eligibility requirements, application and E:\FR\FM\30JNN1.SGM 30JNN1

Agencies

[Federal Register Volume 76, Number 126 (Thursday, June 30, 2011)]
[Notices]
[Pages 38407-38408]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16489]


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

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5511-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 38408]]

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 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 quarterly 
review period ending December 31, 2010, HUD is terminating the DE 
Approval of mortgagees whose default and claim rate exceeds both the 
national rate and 200 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 home        HUD office          Termination         Homeownership
         Mortgagee name            office address       jurisdictions       effective date          centers
----------------------------------------------------------------------------------------------------------------
Dover Mortgage Company.........  711 E Morehead      Knoxville.........  4/26/11............  Atlanta.
                                  Street,
                                  Charlotte, NC
                                  28202.
First Ohio Banc and Lending,     6100 Rockside       Atlanta...........  6/21/11............  Philadelphia.
 Inc..                            Woods Blvd., Ste.
                                  1, Independence,
                                  OH 44131.
First Ohio Banc and Lending,     6100 Rockside       Cleveland.........  6/21/11............  Philadelphia.
 Inc..                            Woods Blvd., Ste.
                                  1, Independence,
                                  OH 44131.
Mac-Clair Mortgage Corp........  G4355 S Saginaw     Detroit...........  4/26/11............  Philadelphia.
                                  St., Burton, MI
                                  48529.
Mac-Clair Mortgage Corp........  G4355 S Saginaw     Flint.............  4/26/11............  Philadelphia.
                                  St., Burton, MI
                                  48529.
----------------------------------------------------------------------------------------------------------------


    Dated: June 22, 2011.
Robert C. Ryan,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-16489 Filed 6-29-11; 8:45 am]
BILLING CODE 4210-67-P