Credit Watch Termination Initiative Termination of Direct Endorsement (DE) Approval, 5262-5263 [2012-2344]

Download as PDF 5262 DATES: Federal Register / Vol. 77, No. 22 / Thursday, February 2, 2012 / Notices Effective Date: January 24, 2012. FOR FURTHER INFORMATION CONTACT: Peggy Miller, Office of Response and Recovery, Federal Emergency Management Agency, 500 C Street SW., Washington, DC 20472, (202) 646–3886. SUPPLEMENTARY INFORMATION: Notice is hereby given that the incident period for this declared disaster is now November 8, 2011, through and including November 13, 2011. The following Catalog of Federal Domestic Assistance Numbers (CFDA) are to be used for reporting and drawing funds: 97.030, Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling; 97.033, Disaster Legal Services; 97.034, Disaster Unemployment Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048, Disaster Housing Assistance to Individuals and Households in Presidentially Declared Disaster Areas; 97.049, Presidentially Declared Disaster Assistance— Disaster Housing Operations for Individuals and Households; 97.050, Presidentially Declared Disaster Assistance to Individuals and Households—Other Needs; 97.036, Disaster Grants—Public Assistance (Presidentially Declared Disasters); 97.039, Hazard Mitigation Grant. recommend an increase of the Federal cost share from seventy-five percent (75%) to not more than ninety percent (90%) of the eligible cost of permanent work under section 406 and emergency work under section 403 and section 407 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act is adjusted annually. The adjustment to the indicator is based on the Consumer Price Index for All Urban Consumers published annually by the U.S. Department of Labor. For disasters declared on January 1, 2012, through December 31, 2012, the qualifying indicator is $131 per capita of State population. This adjustment is based on an increase of 3.0 percent in the Consumer Price Index for All Urban Consumers for the 12-month period that ended December 2011. The Bureau of Labor Statistics of the U.S. Department of Labor released the information on January 19, 2012. [Docket ID FEMA–2012–0009] (The following Catalog of Federal Domestic Assistance Numbers (CFDA) are to be used for reporting and drawing funds: 97.030, Community Disaster Loans; 97.031, Cora Brown Fund; 97.032, Crisis Counseling; 97.033, Disaster Legal Services; 97.034, Disaster Unemployment Assistance (DUA); 97.046, Fire Management Assistance Grant; 97.048, Disaster Housing Assistance to Individuals and Households in Presidentially Declared Disaster Areas; 97.049, Presidentially Declared Disaster Assistance— Disaster Housing Operations for Individuals and Households; 97.050, Presidentially Declared Disaster Assistance to Individuals and Households—Other Needs; 97.036, Disaster Grants—Public Assistance (Presidentially Declared Disasters); 97.039, Hazard Mitigation Grant.) Notice of Adjustment of Statewide Per Capita Indicator for Recommending a Cost Share Adjustment W. Craig Fugate, Administrator, Federal Emergency Management Agency. W. Craig Fugate, Administrator, Federal Emergency Management Agency. [FR Doc. 2012–2352 Filed 2–1–12; 8:45 am] BILLING CODE 9111–23–P DEPARTMENT OF HOMELAND SECURITY Federal Emergency Management Agency [FR Doc. 2012–2353 Filed 2–1–12; 8:45 am] Federal Emergency Management Agency, DHS. ACTION: Notice. AGENCY: BILLING CODE 9111–23–P FEMA gives notice that the statewide per capita indicator for recommending cost share adjustments for major disasters declared on or after January 1, 2012, through December 31, 2012, is $131. DATES: This notice applies to major disasters declared on or after January 1, 2012. FOR FURTHER INFORMATION CONTACT: William Roche, Recovery Directorate, Federal Emergency Management Agency, 500 C Street SW., Washington, DC 20472, (202) 646–3834. SUPPLEMENTARY INFORMATION: Pursuant to 44 CFR 206.47, the statewide per capita indicator that is used to srobinson on DSK4SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 17:04 Feb 01, 2012 Jkt 226001 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5511–N–07] 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 SUMMARY: PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 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 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 that have had their Approval Agreements terminated. On January 21, 2010, HUD issued Mortgagee Letter 2010–03, which advised mortgagees of the extended procedures for terminating Underwriting Authority of Direct Endorsement (DE) mortgagees. Termination of Direct Endorsement Approval (DE 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 DE Approval may be terminated on the basis of poor performance of FHAinsured 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 June 30, 2011, 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 E:\FR\FM\02FEN1.SGM 02FEN1 Federal Register / Vol. 77, No. 22 / Thursday, February 2, 2012 / Notices 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 §§ 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 mortgagee has had its DE Approval terminated by HUD: Mortgagee name Mortgagee home office address HUD office jurisdiction Mortgage Source LLC 600 Old Country Rd., Room 210 Garden City, NY 11530–2011 .. New York .......... Dated: December 20, 2011. Carol Galante, Acting Assistant Secretary for Housing— Federal Housing Commissioner. impairments may access that number through TTY by calling the Federal Relay Service at (800) 877–8339. BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5511–N–06] 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 srobinson on DSK4SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 17:04 Feb 01, 2012 Jkt 226001 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. SUPPLEMENTARY INFORMATION: [FR Doc. 2012–2344 Filed 2–1–12; 8:45 am] PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 5263 Termination effective date 11/1/11 Homeownership center Philadelphia. 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 June 30, 2011, HUD is terminating the Agreements 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 and from establishing a new branch in the location(s) covered by the termination. 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 Direct Endorsement 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 E:\FR\FM\02FEN1.SGM 02FEN1

Agencies

[Federal Register Volume 77, Number 22 (Thursday, February 2, 2012)]
[Notices]
[Pages 5262-5263]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-2344]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5511-N-07]


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 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 that have had their Approval Agreements 
terminated. On January 21, 2010, HUD issued Mortgagee Letter 2010-03, 
which advised mortgagees of the extended procedures for terminating 
Underwriting Authority of Direct Endorsement (DE) mortgagees.
    Termination of Direct Endorsement Approval (DE 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 DE 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 June 30, 2011, 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

[[Page 5263]]

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 Sec. Sec.  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 mortgagee has had its DE Approval terminated 
by HUD:

----------------------------------------------------------------------------------------------------------------
                                  Mortgagee home         HUD office          Termination
        Mortgagee name            office address        jurisdiction       effective date   Homeownership center
----------------------------------------------------------------------------------------------------------------
Mortgage Source LLC...........  600 Old Country    New York..............         11/1/11  Philadelphia.
                                 Rd., Room 210
                                 Garden City, NY
                                 11530-2011.
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    Dated: December 20, 2011.
Carol Galante,
Acting Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2012-2344 Filed 2-1-12; 8:45 am]
BILLING CODE 4210-67-P