Credit Watch Termination Initiative; Termination of Origination Approval Agreements, 38406-38407 [2011-16518]

Download as PDF 38406 Federal Register / Vol. 76, No. 126 / Thursday, June 30, 2011 / Notices as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy. Name of Committee: National Institute of Allergy and Infectious Diseases Special Emphasis Panel, T–Cell Regulation & Induction of Tolerance. Date: July 20–21, 2011. Time: 11 p.m. to 5 p.m. Agenda: To review and evaluate grant applications. Place: National Institutes of Health, 6700B Rockledge Drive, Bethesda, MD 20817 (Telephone Conference Call). Contact Person: Maryam Feili-Hariri, PhD, Scientific Review Officer, Immunology Review Branch, Scientific Review Program, DHHS/NIH/NIAID, 6700B Rockledge Drive, MSC 7616, Bethesda, MD 20892, 301–594– 3243, haririmf@niaid.nih.gov. (Catalogue of Federal Domestic Assistance Program Nos. 93.855, Allergy, Immunology, and Transplantation Research; 93.856, Microbiology and Infectious Diseases Research, National Institutes of Health, HHS) Dated: June 24, 2011. Jennifer S. Spaeth, Director, Office of Federal Advisory Committee Policy. [FR Doc. 2011–16465 Filed 6–29–11; 8:45 am] BILLING CODE 4140–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES National Institutes of Health srobinson on DSK4SPTVN1PROD with NOTICES National Institute of Neurological Disorders and Stroke Notice of Closed Meetings Pursuant to section 10(d) of the Federal Advisory Committee Act, as amended(5 U.S.C. App.), notice is hereby given of the following meetings. The meetings will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable materials, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy. Name of Committee: National Institute of Neurological Disorders and Stroke Special Emphasis Panel, Udall Centers Review. Date: July 14–15, 2011. Time: 8 a.m. to 5 p.m. VerDate Mar<15>2010 16:24 Jun 29, 2011 Jkt 223001 Agenda: To review and evaluate grant applications. Place: Admiral Fell Inn, 888 South Broadway, Baltimore, MD 21231. Contact Person: Ernest W. Lyons, PhD, Scientific Review Officer, Scientific Review Branch, Division of Extramural Research, NINDS/NIH/DHHS/Neuroscience Center, 6001 Executive Blvd., Suite 3208, MSC 9529, Bethesda, MD 20892–9529, 301–496–4056, lyonse@ninds.nih.gov. This notice is being published less than 15 days prior to the meeting due to the timing limitations imposed by the review and funding cycle. Name of Committee: National Institute of Neurological Disorders and Stroke Special Emphasis Panel, Hypothermia Clinical Trial. Date: July 19, 2011. Time: 12:15 p.m. to 2:15 p.m. Agenda: To review and evaluate grant applications. Place: National Institutes of Health, Neuroscience Center, 6001 Executive Boulevard, Rockville, MD 20852 (Telephone Conference Call). Contact Person: Richard D. Crosland, PhD, Scientific Review Officer, Scientific Review Branch, Division of Extramural Research, NINDS/NIH/DHHS/Neuroscience Center, 6001 Executive Blvd., Suite 3208, MSC 9529, Bethesda, MD 20892–9529, 301–594–0635, Rc218u@nih.gov. Name of Committee: National Institute of Neurological Disorders and Stroke Special Emphasis Panel, NeuroNEXT 1. Date: August 1, 2011. Time: 8 a.m. to 12:30 p.m. Agenda: To review and evaluate grant applications. Place: Embassy Suites, 1250 22nd Street, NW., Washington, DC 20037. Contact Person: Shanta Rajaram, PhD, Scientific Review Officer, Scientific Review Branch, Division of Extramural Research, NINDS/NIH/DHHS/Neuroscience Center, 6001 Executive Blvd., Suite 3208, MSC 9529, Bethesda, MD 20892–9529, 301–435–6033 rajarams@mail.nih.gov. Name of Committee: National Institute of Neurological Disorders and Stroke Special Emphasis Panel, NeuroNEXT 2. Date: August 1–2, 2011. Time: 1:30 p.m. to 5:30 p.m. Agenda: To review and evaluate grant applications. Place: Embassy Suites, 1250 22nd Street, NW., Washington, DC 20037. Contact Person: Shanta Rajaram, PhD, Scientific Review Officer, Scientific Review Branch, Division of Extramural Research, NINDS/NIH/DHHS/Neuroscience Center, 6001 Executive Blvd., Suite 3208, MSC 9529, Bethesda, MD 20892–9529, 301–435–6033, rajarams@mail.nih.gov. (Catalogue of Federal Domestic Assistance Program Nos. 93.853, Clinical Research Related to Neurological Disorders; 93.854, Biological Basis Research in the Neurosciences, National Institutes of Health, HHS) PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 Dated: June 23, 2011. Jennifer S. Spaeth, Director, Office of Federal Advisory Committee Policy. [FR Doc. 2011–16461 Filed 6–29–11; 8:45 am] BILLING CODE 4140–01–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5511–N–03] 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, 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 SUMMARY: E:\FR\FM\30JNN1.SGM 30JNN1 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

Agencies

[Federal Register Volume 76, Number 126 (Thursday, June 30, 2011)]
[Notices]
[Pages 38406-38407]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16518]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5511-N-03]


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

[[Page 38407]]

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 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 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 branch        HUD office          Termination
        Mortgagee name          office address       jurisdictions        effective date   Homeownership centers
----------------------------------------------------------------------------------------------------------------
Equity Source Home Loans LLC.  1120 Campus       Newark...............           6/1/2011  Philadelphia.
                                Drive West
                                Morganville, NJ
                                07751.
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.
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    Dated: June 22, 2011.
Robert C. Ryan,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2011-16518 Filed 6-29-11; 8:45 am]
BILLING CODE 4210-67-P