Mortgagee Review Board: Administrative Actions, 41586-41590 [2014-16722]
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Overview of This Information
Collection
(1) Type of Information Collection:
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Application for Permission to Reapply
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(3) Agency form number, if any, and
the applicable component of the DHS
sponsoring the collection: I–212; USCIS.
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(4) Affected public who will be asked
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Dated: July 10, 2014.
Laura Dawkins,
Chief, Regulatory Coordination Division,
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and Immigration Services, Department of
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[FR Doc. 2014–16663 Filed 7–15–14; 8:45 am]
BILLING CODE 9111–97–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5802–N–01]
Mortgagee Review Board:
Administrative Actions
Office of the Assistant
Secretary for Housing–Federal Housing
Commissioner, Department of Housing
and Urban Development (‘‘HUD’’).
ACTION: Notice.
AGENCY:
In compliance with Section
202(c)(5) of the National Housing Act,
this notice advises of the cause and
description of administrative actions
taken by HUD’s Mortgagee Review
Board against HUD-approved
mortgagees.
FOR FURTHER INFORMATION CONTACT:
Nancy A. Murray, Secretary to the
Mortgagee Review Board, 451 Seventh
Street SW., Room B–133/3150,
Washington, DC 20410–8000; telephone
(202) 708–2224 (this is not a toll-free
number). Persons with hearing or
SUMMARY:
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speech impairments may access this
number through TTY by calling the tollfree Federal Information Service at (800)
877–8339.
SUPPLEMENTARY INFORMATION: Section
202(c)(5) of the National Housing Act
(12 U.S.C. 1708(c)(5)) requires that HUD
‘‘publish a description of and the cause
for administrative action against a HUDapproved mortgagee’’ by the
Department’s Mortgagee Review Board
(‘‘Board’’). In compliance with the
requirements of Section 202(c)(5), this
notice advises of actions that have been
taken by the Board in its meetings from
October 1, 2012, to September 19, 2013.
I. Civil Money Penalties, Withdrawals
of FHA Approval, Suspensions,
Probations, Reprimands, and
Administrative Payments
1. Amera Mortgage Corporation,
Milford, MI, [Docket No. 12–1648–MR]
Action: On April 23, 2013, the Board
entered into a Settlement Agreement
with Amera Mortgage Corporation
(‘‘Amera’’) that required Amera to pay a
civil money penalty in the amount of
$348,300 and indemnify the Department
for the life of the loan on twenty-one
(21) HUD/FHA insured loans, without
admitting fault or liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: Amera violated underwriting
requirements in connection with sixtynine (69) loans when it did not check
the eligibility of all of the participants
in the transaction, failed to implement
quality control of branch origination
activities, failed to include the name
and Nationwide Mortgage Licensing
System (NMLS) identification number
of the mortgage loan officer in HUD
systems and loan documentation, used
the incorrect NMLS identification
numbers in loan documentation, falsely
represented branch information to HUD,
submitted or caused the submission of
false loan underwriting approval forms
in connection with six (6) loan files
involving a debarred individual,
employed a debarred individual, and
made two (2) false certifications to HUD
on Amera’s annual recertification
submissions in connection with
Amera’s annual renewal of eligibility
documentation for its fiscal years
ending in 2011 and 2012.
2. American Southwest Mortgage
Corporation, Oklahoma City, OK
[Docket No. 13–1544–MR]
Action: On November 14, 2013, the
Board entered into a Settlement
Agreement with American Southwest
Mortgage Corporation (‘‘ASMC’’) that
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approval requirements in effect at that
time, as set forth in 24 CFR Part 202.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: In accordance with HUD
requirements, Ark failed to establish
and implement a quality control plan;
failed to adequately verify the
borrower’s source of funds to close; and
failed to ensure that loan documents
were not faxed from an interested third
party.
3. AmeriSave Mortgage Corporation,
Atlanta, GA [Docket No. 13–1489–MR]
Action: On July 18, 2013, the Board
entered into a Settlement Agreement
with AmeriSave Mortgage Corporation
(‘‘AmeriSave’’) that required AmeriSave
to pay civil money penalties in the
amount of $131,500, without admitting
fault or liability.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: During the period from April 1,
2011, to October 24, 2012, AmeriSave
failed to enter NMLS identification
numbers for five hundred twenty six
(526) HUD/FHA insured loans into FHA
Connection.
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required ASMC to pay an administrative
payment of $5,000, and $127,899.18 to
settle monies owed to HUD on two (2)
outstanding indemnification
agreements, without admitting fault or
liability.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: ASMC violated the requirements
of two (2) indemnification agreements
with HUD by failing to timely remit
payments owed to HUD.
5. BJV Financial Services, Inc., d/b/a
Forum Mortgage Bancorp, Chicago, IL
[Docket No. 10–1715–MR]
4. Ark Mortgage, Inc., North Brunswick,
NJ [Docket No. 12–1611–MR]
Action: On October 28, 2013, the
Board entered into a Superseding
Settlement Agreement with Ark
Mortgage, Inc. (‘‘Ark’’) that required Ark
to pay a civil money penalty of $50,000,
and the President of Ark agreed to
personally pay $125,000 over five (5)
years to reimburse HUD for losses that
HUD may suffer with respect to
mortgages identified in the Notice of
Violation dated April 12, 2012. In
addition, Ark was allowed to
voluntarily withdraw its FHA approval,
as of the effective date of the Settlement
Agreement. Ark will be permitted to
reapply for FHA approval, subject to the
following conditions: (a) The President
of Ark remaining current on all
payments personally due to HUD; (b)
Ark is current with respect to all prior
indemnification payments due to HUD;
(c) Ark pays HUD a lump sum of
$200,000 which shall be applied to any
outstanding indebtedness due by Ark to
HUD; (d) Ark provides HUD with a
current financial statement prepared in
accordance with HUD requirements,
which evidences that Ark meets HUD’s
net worth requirements after payment of
the $200,000; (e) there are no
intervening events independent of this
matter that would cause the Board to
take an adverse action against Ark; and
(f) Ark otherwise meets all of HUD’s
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Action: On May 19, 2011, the Board
voted to assess civil money penalties in
the amount of $139,000 against BJV
Financial Services, Inc. (‘‘BJV’’). On
June 13, 2013, the Board entered into a
Settlement Agreement with BJV that
required BJV to pay an administrative
payment to HUD in the amount of
$70,000, without admitting fault or
liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: BJV failed to comply with HUD’s
Quality Control requirements; failed to
disclose affiliated business
arrangements; charged unallowable and/
or unearned fees; failed to resolve
discrepancies and/or conflicting
information in loan documents; and
submitted a false certification to HUD
on February 3, 2009, that BJV had not
been involved in any proceeding in
2008 which resulted in sanctions by a
state government.
6. Capital Financial Mortgage
Corporation, Folsom, PA [Docket No.
13–1540–MR]
Action: On August 6, 2013, the Board
issued a Notice of Administrative
Action immediately suspending the
FHA approval of Capital Financial
Mortgage Corporation (‘‘CFMC’’).
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: CFMC failed to notify HUD/FHA
that it had been suspended by the
Commonwealth of Pennsylvania
Department of Banking and Securities,
Bureau of Compliance and Licensing;
failed to fund four (4) closed loans;
failed to notify HUD that it had ceased
operations; failed to submit its
automated annual certification for the
fiscal year ending December 31, 2012;
failed to pay the annual recertification
fee for the fiscal year ending December
31, 2012; and failed to submit an
acceptable audited financial statement
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for its fiscal year ending December 31,
2012.
7. Capital Financial Mortgage
Corporation, Folsom, PA [Docket No.
13–1540–MR]
Action: On November 6, 2013, the
Board issued a Notice of Administrative
Action permanently withdrawing the
FHA approval of Capital Financial
Mortgage Corporation (‘‘CFMC’’).
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: CFMC failed to notify HUD/FHA
that it had been suspended by the
Commonwealth of Pennsylvania
Department of Banking and Securities,
Bureau of Compliance and Licensing;
failed to fund four (4) closed loans;
failed to notify HUD that it had ceased
operations; failed to submit its
automated annual certification for the
fiscal year ending December 31, 2012;
failed to pay the annual recertification
fee for the fiscal year ending December
31, 2012; and failed to submit an
acceptable audited financial statement
for its fiscal year ending December 31,
2012.
8. Crossfire Financial Network, Miami,
FL [Docket No. 13–1329–MR]
Action: On May 30, 2013, the Board
voted to refer Crossfire Financial
Network (CFN) to the Office of Inspector
General and the Office of General
Counsel for action under the Program
Fraud Civil Remedies Act for double
damages and a penalty.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: CFN approved an illegible HUD/
FHA cash-out refinance loan.
9. Equity Loans, LLC, Atlanta, GA
[Docket No. 12–1667–MR]
Action: On September 18, 2013, the
Board entered into a Settlement
Agreement with Equity Loans, LLC
(‘‘EL’’) that required EL, to pay a civil
money penalty in the amount of
$73,000, without admitting fault or
liability.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: EL falsely certified on its 2009
and 2010 annual certifications that it
was not subject to any adverse action
filed by a state regulatory agency, failed
to notify HUD/FHA of adverse actions
filed by state governmental agencies
within ten (10) business days of the
sanction, failed to maintain a Quality
Control (QC) Plan that contained all of
the required elements, failed to ensure
the review of all Early Payment
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Defaults, and failed to ensure that loans
were originated in accordance with
HUD/FHA guidelines.
10. Equity Source Home Loans, LLC,
Morganville, NJ [Docket No. 11–1239–
MRT]
Action: On February 4, 2014, the
Board entered into a Settlement
Agreement with Equity Source Home
Loans, LLC (‘‘ESHL’’) that required
ESHL, to pay a civil money penalty in
the amount of $7,500, and be withdrawn
from FHA approval for a period of one
(1) year, without admitting fault or
liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: ESHL failed to comply with
HUD’s annual recertification
requirements for its fiscal year ending
December 31, 2010, and ESHL failed to
timely remit Mortgage Insurance
Premiums (MIPs) to FHA on three (3)
FHA-insured loans serviced by ESHL.
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11. Fifth Third Bank, Cincinnati, OH
[Docket No. 12–1612–MR]
Action: On October 7, 2013, the Board
entered into a Settlement Agreement
with Fifth Third Bank (‘‘FTB’’) that
required FTB to pay a civil money
penalty in the amount of $48,000; an
administrative payment of $475,000;
and indemnify the Department on one
hundred twenty-two (122) FHA loans
should they go into default within a
period of five (5) years from the date of
the agreement, without admitting fault
or liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: FTB failed to properly service
FHA-insured loans; and/or failed to
adequately evaluate or document its
evaluation of loss mitigation techniques
used to determine which loss mitigation
techniques were appropriate; failed to
adequately evaluate and/or document
its evaluation of the borrower’s financial
condition and eligibility for FHA Home
Affordable Modification Program
(HAMP); failed to adequately evaluate
and/or document its evaluation of a
borrower for all available HUD/FHA
loss mitigation alternatives for one (1)
loan; improperly referred a loan to
foreclosure while evaluating the
borrower for loss mitigation alternatives;
failed to properly document the
assumption of an FHA-insured loan;
failed to appropriately apply HUD’s
property preservation and inspection
regulations; and failed to properly
report and code one hundred thirtythree (133) loans through HUD’s Single
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Family Default Monitoring System
(SFDMS).
12. First Home Mortgage Corporation,
Baltimore, MD [Docket No. 12–1685–
MR]
Action: On May 10, 2013, the Board
entered into a Settlement Agreement
with First Home Mortgage Corporation
(‘‘FHMC’’) that required FHMC to pay a
civil money penalty in the amount of
$250,000, without admitting fault or
liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: FHMC failed to ensure that no one
was employed that was debarred or
otherwise not allowed to perform
activities involving the processing,
origination or underwriting of FHA
insured loans; failed to ensure its
Quality Control (QC) Plan contained all
of the required elements; failed to
ensure it conducted QC reviews on
loans that went into default within the
first six (6) months of repayment; failed
to implement its QC plan in accordance
with HUD/FHA requirements; failed to
ensure that it complied with HUD’s
requirements for Lender Insured (LI)
loans; and made two (2) false
certifications to HUD on FHMC’s annual
recertification submission.
13. Franklin First Financial, LTD,
Melville, NY [Docket No. 12–1674–MR]
Action: On July 18, 2013, the Board
entered into a Settlement Agreement
with Franklin First Financial, LTD
(‘‘Franklin’’) that required Franklin to
pay a civil money penalty in the amount
of $66,500, and to indemnify HUD for
any loss (past, present or future) on ten
(10) FHA loans should they go into
default within a period of five (5) years
from the date of their endorsement,
without admitting fault or liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: Franklin failed to ensure that loan
documents were not faxed from an
interested third party or to resolve
discrepancies with conflicting
information; failed to verify and
adequately document the borrower’s
earnest money deposit, source of funds
to close and/or to pay consumer debts;
failed to adequately document the
income and/or stability of income used
to qualify the borrowers; failed to
downgrade a loan to its proper finding
and manually underwrite the loan,
which was required due to disputed
accounts on the credit report; failed to
ensure the borrower was eligible for
maximum financing above ninety
percent (90%) for a new construction
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property; and failed to properly
calculate the maximum allowable
mortgage for a streamline refinance
transaction without an appraisal, which
resulted in the approval of an overinsured loan.
14. MLD Mortgage, Inc. DBA The Money
Store, Florham Park, NJ [Docket No. 13–
1340–MR]
Action: On September 4, 2013, the
Board entered into a Settlement
Agreement with MLD Mortgage, Inc.
(‘‘MLD’’) that required MLD to pay a
civil money penalty in the amount of
$60,000; remit $2,315.19 to HUD/FHA
to buy down an over-insured mortgage;
and pay $357,250 to satisfy the past due
indebtedness on two (2) FHA loans
MLD had previously indemnified; as
well as to indemnify HUD for any loss
(past, present or future) on six (6) FHA
loans should they go into default within
a period of five (5) years from the date
of their endorsement, without admitting
fault or liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: MLD failed to properly document
and verify funds used as gifts; exceeded
FHA’s maximum mortgage amount,
resulting in two (2) over-insured loans;
failed to properly analyze liabilities;
charged the borrowers a commitment
fee without a lock-in agreement
guaranteeing, in writing, the interest
rate and discount points for at least
fifteen (15) days prior to loan closing;
and failed to comply with settlement
requirements needed to close.
15. MortgageAmerica, Inc, Birmingham,
AL [Docket No. 12–1639–MR]
Action: On January 15, 2014, the
Board entered into a Settlement
Agreement with MortgageAmerica, Inc.
(‘‘MortgageAmerica’’) that required
MortgageAmerica to pay a civil money
penalty in the amount of $3,000, and
remit all Mortgage Insurance Premiums
and late fees due to HUD on eighty-two
(82) FHA mortgages, without admitting
fault or liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: MortgageAmerica failed to either
timely remit monthly mortgage
insurance premiums to HUD/FHA or to
notify HUD/FHA within fifteen (15)
calendar days of the termination of the
contract of mortgage insurance, the sale
of the mortgage, or both on eighty-two
(82) FHA loans.
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16. Network Capital Funding
Corporation, Irvine, CA [Docket No. 13–
1542–MR]
Action: On February 4, 2014, the
Board entered into a Settlement
Agreement with Network Capital
Funding Corporation (‘‘NCFC’’) that
required NCFC to pay a civil money
penalty in the amount of $22,000,
without admitting fault or liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: NCFC submitted two (2) false
annual certifications to HUD/FHA on
March 19, 2012, and February 2, 2013,
with respect to whether NCFC had been
involved in a proceeding, or
investigation, that could have resulted,
or did result, in a civil money penalty
or other adverse action taken by a
federal, state or local government, and
relating to NCFC’s failure to timely
remit its fiscal year 2010 audited
financial statements.
17. Precision Funding Group LLC,
Cherry Hill, NJ [Docket No. 12–1651–
MR]
Action: On June 27, 2013, the Board
issued a Notice of Administrative
Action withdrawing the FHA approval
of Precision Funding Group LLC
(‘‘PFG’’).
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: PFG failed to submit an
acceptable Audited Financial Statement
for the fiscal year ending December 31,
2011, and failed to adequately
document the source of a borrower’s
closing costs.
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18. R.H. Lending, Inc., Colleyville, TX
[Docket No. 12–1299–MR]
Action: On June 12, 2013, the Board
entered into a Settlement Agreement
with R.H. Lending, Inc. (‘‘RHL’’) that
required RHL to pay a civil money
penalty in the amount of $295,000;
indemnify HUD for any loss (past,
present or future) on two (2) FHA loans
should they go into default within a
period of five (5) years from the date of
the agreement; and be placed on
probation for a period of six (6) months,
without admitting fault or liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: RHL failed to provide the required
construction-permanent mortgage
disclosures and obtain required
certifications pertaining to liens; failed
to obtain construction loan agreements;
failed to disburse constructionpermanent loan proceeds, in accordance
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with HUD requirements; failed to fully
account for the disbursement of
escrowed loan proceeds; failed to obtain
written approval from the mortgagor
prior to the release of construction draw
funds; failed to obtain complete sales
agreements; failed to ensure that
manufactured home properties were
eligible for FHA mortgage insurance;
failed to verify and properly document
funds for the mortgagor’s cash
investment in the property; submitted
loans for FHA mortgage insurance that
exceeded the applicable loan-to-value
limits; and charged an excessive and
unearned fee.
19. TXL Mortgage Corporation, Houston,
TX [Docket No. 12–1660–MR]
Action: On August 7, 2013, the Board
entered into a Settlement Agreement
with TXL Mortgage Corporation
(‘‘TXL’’) that required TXL to pay a civil
money penalty in the amount of
$124,000, without admitting fault or
liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: TXL failed to ensure that
individuals originating HUD/FHA loans
were exclusively employed by TXL in
the mortgage lending field; failed to
meet branch requirements for
participation in the FHA mortgage
insurance program; failed to ensure that
the correct mortgagee identification
number was used when originating
FHA-insured mortgage loans; failed to
comply with FHA Connection (FHAC)
data entry requirements regarding
sponsored originators; failed to
document that it had performed
adequate pre-insurance reviews of loans
it approved under the Lender Insurance
(LI) program; and failed to ensure that
a mortgage loan officer’s (MLO)
Nationwide Mortgage Licensing System
(NMLS) unique MLO identifier was
accurately entered into FHAC.
20. U.S. Bank, N.A., Minneapolis, MN
[Docket No. 12–1541–MR]
Action: On April 9, 2013, the Board
entered into a Settlement Agreement
with U.S. Bank, N.A. (‘‘USB’’) that
required USB to pay a civil money
penalty in the amount of $30,000,
without admitting fault or liability.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: USB failed to have FHA
multifamily mortgages serviced by an
FHA approved mortgagee, and
permitted escrow funds to be used for
a purpose other than that for which they
were received.
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21. Webster Bank, N.A., Cheshire, CT
[Docket No. 12–1645–MR]
Action: On March 11, 2013, the Board
entered into a Settlement Agreement
with Webster Bank, N.A. (‘‘Webster’’)
that required Webster to pay an
administrative payment in the amount
of $66,500; remit a total $705.66 to the
current holder of two (2) FHA mortgages
to buy-down over-insured mortgages;
and indemnify HUD for any loss (past,
present or future) on two (2) FHA loans
should they go into default within a
period of five (5) years from the date of
their respective endorsement dates,
without admitting fault or liability.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: Webster permitted a nonapproved lender to obtain and process
loan applications, and failed to ensure
borrowers made the minimum required
investment.
II. Lenders That Failed To Timely Meet
Requirements for Annual
Recertification of HUD/FHA Approval
Action: The Board entered into
settlement agreements with the lenders
listed below, which required the lender
to pay either a $3,500 or $7,500 civil
money penalty, without admitting fault
or liability.
Cause: The Board took this action
based upon allegations that the lenders
listed below failed to comply with the
Department’s annual recertification
requirements in a timely manner.
1. Coast 2 Coast Funding Group, Inc.,
Lake Forest, CA ($3,500) [Docket
No. 13–1520–MRT]
2. Coral Mortgage Bankers Corporation,
Englewood, NJ ($3,500) [Docket
No.13–1530–MRT]
3. First National Bank at Paris, Paris, AR
($7,500) [Docket No. 13–1520–MRT]
III. Lenders That Failed To Meet
Requirements for Annual
Recertification of HUD/FHA Approval
Action: The Board voted to withdraw
the FHA approval of each of the lenders
listed below for a period of one (1) year,
or permanently.
Cause: The Board took this action
based upon allegations that the lenders
listed below were not in compliance
with the Department’s annual
recertification requirements.
1. 1st Step Mortgage Group, Inc.,
Rockford, IL (One Year
Withdrawal), [Docket No. 13–1498–
MRT]
2. Acceptance Capital Mortgage Corp.,
Spokane, WA (One Year
Withdrawal), [Docket No. 13–1468–
MRT]
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41590
Federal Register / Vol. 79, No. 136 / Wednesday, July 16, 2014 / Notices
3. Affiliated Financial Group, LLC,
Greenwood Village, CO (One Year
Withdrawal), [Docket No. 14–1664–
MRT]
4. Bank of Erath, Abbeville, LA (One
Year Withdrawal), [Docket No. 13–
1475–MRT]
5. Best Mortgage, Inc., Kansas City, MO
(One Year Withdrawal), [Docket No.
14–1665–MRT]
6. Capital Mortgage Funding,
Southfield, MI (One Year
Withdrawal), [Docket No. 14–1666–
MRT]
7. Fairway Independent Mortgage Corp.
DBA Residential Mortgage Corp.,
Montgomery, AL (One Year
Withdrawal), [Docket No. 13–1490–
MRT]
8. Financial Mortgage, Inc., Fairfax, VA
(One Year Withdrawal), [Docket No.
14–1667–MRT]
9. First Mortgage Capital, Inc., Bayamon,
PR (One Year Withdrawal), [Docket
No. 13–1470–MRT]
10. First Republic Bank, Las Vegas, NV
(One Year Withdrawal), [Docket No.
14–1668–MRT]
11. Funding, Incorporated, Houston, TX
(One Year Withdrawal), [Docket No.
13–1469–MRT]
12. HSOA Mortgage Company, Seal
Beach, CA (One Year Withdrawal),
[Docket No. 14–1669–MRT]
13. Ironwood Mortgage Servicing, LLC,
Huntington Beach, CA (One Year
Withdrawal), [Docket No. 14–1670–
MRT]
14. Just Mortgage, Inc., Rancho
Cucamonga, CA (One Year
Withdrawal), [Docket No. 14–1671–
MRT]
15. Lehman Brothers Holdings, Inc.,
New York, NY (Permanent
Withdrawal), [Docket No. 14–1672–
MRT]
16. Nationwide Mortgage and
Associates, Inc., Ft. Lauderdale, FL
(One Year Withdrawal), [Docket No.
14–1673–MRT]
17. Pleasant Valley Home Mortgage
Corp., Moorestown, NJ (One Year
Withdrawal), [Docket No. 14–1674–
MRT]
18. TotalBank, Miami, FL (One Year
Withdrawal), [Docket No.13–1476–
MRT]
19. Secured Residential Funding, Inc.,
San Juan Capistrano, CA (One Year
Withdrawal), [Docket No. 14–1678–
MRT]
20. Uniwest Mortgage Corporation, San
Diego, CA (One Year Withdrawal),
[Docket No. 14–1675–MRT]
21. Westlend Financing, Inc., Dana
Point, CA (One Year Withdrawal),
[Docket No. 14–1676–MRT]
22. Wilmington Trust Company,
Wilmington, DE (One Year
VerDate Mar<15>2010
17:58 Jul 15, 2014
Jkt 232001
[FR Doc. 2014–16722 Filed 7–15–14; 8:45 am]
submitted to OMB may be obtained
from Mr. Stevens.
SUPPLEMENTARY INFORMATION: This
notice informs the public that HUD is
seeking approval from OMB for the
information collection described in
Section A.
BILLING CODE 4210–67–P
A. Overview of Information Collection
Withdrawal), [Docket No. 14–1677–
MRT]
Dated: July 10, 2014.
Carol Galante,
Assistant Secretary for Housing–Federal
Housing Commissioner.
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5756–N–27]
60-Day Notice of Proposed Information
Collection: Energy Efficient Mortgages
(EEMs)
Office of the Assistant
Secretary for Housing—Federal Housing
Commissioner, HUD.
ACTION: Notice.
AGENCY:
HUD is seeking approval from
the Office of Management and Budget
(OMB) for the information collection
described below. In accordance with the
Paperwork Reduction Act, HUD is
requesting comment from all interested
parties on the proposed collection of
information. The purpose of this notice
is to allow for 60 days of public
comment.
SUMMARY:
Comments Due Date: September
15, 2014.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
Control Number and should be sent to:
Colette Pollard, Reports Management
Officer, QDAM, Department of Housing
and Urban Development, 451 7th Street
SW., Room 4176, Washington, DC
20410–5000; telephone 202–402–3400
(this is not a toll-free number) or email
at Colette.Pollard@hud.gov for a copy of
the proposed forms or other available
information. Persons with hearing or
speech impairments may access this
number through TTY by calling the tollfree Federal Relay Service at (800) 877–
8339.
FOR FURTHER INFORMATION CONTACT:
Kevin Stevens, Director, Home Mortgage
Insurance Division, Office of Single
Family Program Development,
Department of Housing and Urban
Development, 451 7th Street SW.,
Washington, DC 20410, email Kevin
Stevens at Kevin.L.Stevens@hud.gov, or
telephone (202) 708–2121. This is not a
toll-free number. Persons with hearing
or speech impairments may access this
number through TTY by calling the tollfree Federal Relay Service at (800) 877–
8339. Copies of available documents
DATES:
PO 00000
Frm 00060
Fmt 4703
Sfmt 4703
Title of Information Collection:
Energy Efficient Mortgages.
OMB Approval Number: 2502–0561.
Type of Request: Extension.
Form Number: Not applicable.
Description of the need for the
information and proposed use: Lenders
provide the required information to
determine the eligibility of a mortgage to
be insured under Section 513 of the
Housing and Community Development
Act of 1992 (Section 106 of the Energy
Policy Act of 1992). Section 2123 of the
Housing and Economic Recovery Act of
2008 (HERA) (Public Law 110–289,
approved July 30, 2008)) amended
Section 106 of the Energy Policy Act of
1992 which revised the maximum dollar
amount that can be added to an FHAinsured mortgage for energy efficient
improvements.
Respondents (i.e. affected public):
Business.
Estimated Number of Respondents:
110.
Estimated Number of Responses:
2,420.
Frequency of Response: One per
mortgage.
Average Hours per Response: 4.25
hours.
Total Estimated Burdens: 2,571 hours.
B. Solicitation of Public Comment
This notice is soliciting comments
from members of the public and affected
parties concerning the collection of
information described in Section A on
the following: (1) Whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility; (2) The accuracy of the
agency’s estimate of the burden of the
proposed collection of information; (3)
Ways to enhance the quality, utility, and
clarity of the information to be
collected; and (4) Ways to 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.
HUD encourages interested parties to
submit comment in response to these
questions.
E:\FR\FM\16JYN1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 136 (Wednesday, July 16, 2014)]
[Notices]
[Pages 41586-41590]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16722]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5802-N-01]
Mortgagee Review Board: Administrative Actions
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, Department of Housing and Urban Development (``HUD'').
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: In compliance with Section 202(c)(5) of the National Housing
Act, this notice advises of the cause and description of administrative
actions taken by HUD's Mortgagee Review Board against HUD-approved
mortgagees.
FOR FURTHER INFORMATION CONTACT: Nancy A. Murray, Secretary to the
Mortgagee Review Board, 451 Seventh Street SW., Room B-133/3150,
Washington, DC 20410-8000; telephone (202) 708-2224 (this is not a
toll-free number). Persons with hearing or speech impairments may
access this number through TTY by calling the toll-free Federal
Information Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION: Section 202(c)(5) of the National Housing
Act (12 U.S.C. 1708(c)(5)) requires that HUD ``publish a description of
and the cause for administrative action against a HUD-approved
mortgagee'' by the Department's Mortgagee Review Board (``Board''). In
compliance with the requirements of Section 202(c)(5), this notice
advises of actions that have been taken by the Board in its meetings
from October 1, 2012, to September 19, 2013.
I. Civil Money Penalties, Withdrawals of FHA Approval, Suspensions,
Probations, Reprimands, and Administrative Payments
1. Amera Mortgage Corporation, Milford, MI, [Docket No. 12-1648-MR]
Action: On April 23, 2013, the Board entered into a Settlement
Agreement with Amera Mortgage Corporation (``Amera'') that required
Amera to pay a civil money penalty in the amount of $348,300 and
indemnify the Department for the life of the loan on twenty-one (21)
HUD/FHA insured loans, without admitting fault or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: Amera violated underwriting
requirements in connection with sixty-nine (69) loans when it did not
check the eligibility of all of the participants in the transaction,
failed to implement quality control of branch origination activities,
failed to include the name and Nationwide Mortgage Licensing System
(NMLS) identification number of the mortgage loan officer in HUD
systems and loan documentation, used the incorrect NMLS identification
numbers in loan documentation, falsely represented branch information
to HUD, submitted or caused the submission of false loan underwriting
approval forms in connection with six (6) loan files involving a
debarred individual, employed a debarred individual, and made two (2)
false certifications to HUD on Amera's annual recertification
submissions in connection with Amera's annual renewal of eligibility
documentation for its fiscal years ending in 2011 and 2012.
2. American Southwest Mortgage Corporation, Oklahoma City, OK [Docket
No. 13-1544-MR]
Action: On November 14, 2013, the Board entered into a Settlement
Agreement with American Southwest Mortgage Corporation (``ASMC'') that
[[Page 41587]]
required ASMC to pay an administrative payment of $5,000, and
$127,899.18 to settle monies owed to HUD on two (2) outstanding
indemnification agreements, without admitting fault or liability.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: ASMC violated the requirements
of two (2) indemnification agreements with HUD by failing to timely
remit payments owed to HUD.
3. AmeriSave Mortgage Corporation, Atlanta, GA [Docket No. 13-1489-MR]
Action: On July 18, 2013, the Board entered into a Settlement
Agreement with AmeriSave Mortgage Corporation (``AmeriSave'') that
required AmeriSave to pay civil money penalties in the amount of
$131,500, without admitting fault or liability.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: During the period from April 1,
2011, to October 24, 2012, AmeriSave failed to enter NMLS
identification numbers for five hundred twenty six (526) HUD/FHA
insured loans into FHA Connection.
4. Ark Mortgage, Inc., North Brunswick, NJ [Docket No. 12-1611-MR]
Action: On October 28, 2013, the Board entered into a Superseding
Settlement Agreement with Ark Mortgage, Inc. (``Ark'') that required
Ark to pay a civil money penalty of $50,000, and the President of Ark
agreed to personally pay $125,000 over five (5) years to reimburse HUD
for losses that HUD may suffer with respect to mortgages identified in
the Notice of Violation dated April 12, 2012. In addition, Ark was
allowed to voluntarily withdraw its FHA approval, as of the effective
date of the Settlement Agreement. Ark will be permitted to reapply for
FHA approval, subject to the following conditions: (a) The President of
Ark remaining current on all payments personally due to HUD; (b) Ark is
current with respect to all prior indemnification payments due to HUD;
(c) Ark pays HUD a lump sum of $200,000 which shall be applied to any
outstanding indebtedness due by Ark to HUD; (d) Ark provides HUD with a
current financial statement prepared in accordance with HUD
requirements, which evidences that Ark meets HUD's net worth
requirements after payment of the $200,000; (e) there are no
intervening events independent of this matter that would cause the
Board to take an adverse action against Ark; and (f) Ark otherwise
meets all of HUD's approval requirements in effect at that time, as set
forth in 24 CFR Part 202.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: In accordance with HUD
requirements, Ark failed to establish and implement a quality control
plan; failed to adequately verify the borrower's source of funds to
close; and failed to ensure that loan documents were not faxed from an
interested third party.
5. BJV Financial Services, Inc., d/b/a Forum Mortgage Bancorp, Chicago,
IL [Docket No. 10-1715-MR]
Action: On May 19, 2011, the Board voted to assess civil money
penalties in the amount of $139,000 against BJV Financial Services,
Inc. (``BJV''). On June 13, 2013, the Board entered into a Settlement
Agreement with BJV that required BJV to pay an administrative payment
to HUD in the amount of $70,000, without admitting fault or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: BJV failed to comply with HUD's
Quality Control requirements; failed to disclose affiliated business
arrangements; charged unallowable and/or unearned fees; failed to
resolve discrepancies and/or conflicting information in loan documents;
and submitted a false certification to HUD on February 3, 2009, that
BJV had not been involved in any proceeding in 2008 which resulted in
sanctions by a state government.
6. Capital Financial Mortgage Corporation, Folsom, PA [Docket No. 13-
1540-MR]
Action: On August 6, 2013, the Board issued a Notice of
Administrative Action immediately suspending the FHA approval of
Capital Financial Mortgage Corporation (``CFMC'').
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: CFMC failed to notify HUD/FHA
that it had been suspended by the Commonwealth of Pennsylvania
Department of Banking and Securities, Bureau of Compliance and
Licensing; failed to fund four (4) closed loans; failed to notify HUD
that it had ceased operations; failed to submit its automated annual
certification for the fiscal year ending December 31, 2012; failed to
pay the annual recertification fee for the fiscal year ending December
31, 2012; and failed to submit an acceptable audited financial
statement for its fiscal year ending December 31, 2012.
7. Capital Financial Mortgage Corporation, Folsom, PA [Docket No. 13-
1540-MR]
Action: On November 6, 2013, the Board issued a Notice of
Administrative Action permanently withdrawing the FHA approval of
Capital Financial Mortgage Corporation (``CFMC'').
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: CFMC failed to notify HUD/FHA
that it had been suspended by the Commonwealth of Pennsylvania
Department of Banking and Securities, Bureau of Compliance and
Licensing; failed to fund four (4) closed loans; failed to notify HUD
that it had ceased operations; failed to submit its automated annual
certification for the fiscal year ending December 31, 2012; failed to
pay the annual recertification fee for the fiscal year ending December
31, 2012; and failed to submit an acceptable audited financial
statement for its fiscal year ending December 31, 2012.
8. Crossfire Financial Network, Miami, FL [Docket No. 13-1329-MR]
Action: On May 30, 2013, the Board voted to refer Crossfire
Financial Network (CFN) to the Office of Inspector General and the
Office of General Counsel for action under the Program Fraud Civil
Remedies Act for double damages and a penalty.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: CFN approved an illegible HUD/
FHA cash-out refinance loan.
9. Equity Loans, LLC, Atlanta, GA [Docket No. 12-1667-MR]
Action: On September 18, 2013, the Board entered into a Settlement
Agreement with Equity Loans, LLC (``EL'') that required EL, to pay a
civil money penalty in the amount of $73,000, without admitting fault
or liability.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: EL falsely certified on its
2009 and 2010 annual certifications that it was not subject to any
adverse action filed by a state regulatory agency, failed to notify
HUD/FHA of adverse actions filed by state governmental agencies within
ten (10) business days of the sanction, failed to maintain a Quality
Control (QC) Plan that contained all of the required elements, failed
to ensure the review of all Early Payment
[[Page 41588]]
Defaults, and failed to ensure that loans were originated in accordance
with HUD/FHA guidelines.
10. Equity Source Home Loans, LLC, Morganville, NJ [Docket No. 11-1239-
MRT]
Action: On February 4, 2014, the Board entered into a Settlement
Agreement with Equity Source Home Loans, LLC (``ESHL'') that required
ESHL, to pay a civil money penalty in the amount of $7,500, and be
withdrawn from FHA approval for a period of one (1) year, without
admitting fault or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: ESHL failed to comply with
HUD's annual recertification requirements for its fiscal year ending
December 31, 2010, and ESHL failed to timely remit Mortgage Insurance
Premiums (MIPs) to FHA on three (3) FHA-insured loans serviced by ESHL.
11. Fifth Third Bank, Cincinnati, OH [Docket No. 12-1612-MR]
Action: On October 7, 2013, the Board entered into a Settlement
Agreement with Fifth Third Bank (``FTB'') that required FTB to pay a
civil money penalty in the amount of $48,000; an administrative payment
of $475,000; and indemnify the Department on one hundred twenty-two
(122) FHA loans should they go into default within a period of five (5)
years from the date of the agreement, without admitting fault or
liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: FTB failed to properly service
FHA-insured loans; and/or failed to adequately evaluate or document its
evaluation of loss mitigation techniques used to determine which loss
mitigation techniques were appropriate; failed to adequately evaluate
and/or document its evaluation of the borrower's financial condition
and eligibility for FHA Home Affordable Modification Program (HAMP);
failed to adequately evaluate and/or document its evaluation of a
borrower for all available HUD/FHA loss mitigation alternatives for one
(1) loan; improperly referred a loan to foreclosure while evaluating
the borrower for loss mitigation alternatives; failed to properly
document the assumption of an FHA-insured loan; failed to appropriately
apply HUD's property preservation and inspection regulations; and
failed to properly report and code one hundred thirty-three (133) loans
through HUD's Single Family Default Monitoring System (SFDMS).
12. First Home Mortgage Corporation, Baltimore, MD [Docket No. 12-1685-
MR]
Action: On May 10, 2013, the Board entered into a Settlement
Agreement with First Home Mortgage Corporation (``FHMC'') that required
FHMC to pay a civil money penalty in the amount of $250,000, without
admitting fault or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: FHMC failed to ensure that no
one was employed that was debarred or otherwise not allowed to perform
activities involving the processing, origination or underwriting of FHA
insured loans; failed to ensure its Quality Control (QC) Plan contained
all of the required elements; failed to ensure it conducted QC reviews
on loans that went into default within the first six (6) months of
repayment; failed to implement its QC plan in accordance with HUD/FHA
requirements; failed to ensure that it complied with HUD's requirements
for Lender Insured (LI) loans; and made two (2) false certifications to
HUD on FHMC's annual recertification submission.
13. Franklin First Financial, LTD, Melville, NY [Docket No. 12-1674-MR]
Action: On July 18, 2013, the Board entered into a Settlement
Agreement with Franklin First Financial, LTD (``Franklin'') that
required Franklin to pay a civil money penalty in the amount of
$66,500, and to indemnify HUD for any loss (past, present or future) on
ten (10) FHA loans should they go into default within a period of five
(5) years from the date of their endorsement, without admitting fault
or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: Franklin failed to ensure that
loan documents were not faxed from an interested third party or to
resolve discrepancies with conflicting information; failed to verify
and adequately document the borrower's earnest money deposit, source of
funds to close and/or to pay consumer debts; failed to adequately
document the income and/or stability of income used to qualify the
borrowers; failed to downgrade a loan to its proper finding and
manually underwrite the loan, which was required due to disputed
accounts on the credit report; failed to ensure the borrower was
eligible for maximum financing above ninety percent (90%) for a new
construction property; and failed to properly calculate the maximum
allowable mortgage for a streamline refinance transaction without an
appraisal, which resulted in the approval of an over-insured loan.
14. MLD Mortgage, Inc. DBA The Money Store, Florham Park, NJ [Docket
No. 13-1340-MR]
Action: On September 4, 2013, the Board entered into a Settlement
Agreement with MLD Mortgage, Inc. (``MLD'') that required MLD to pay a
civil money penalty in the amount of $60,000; remit $2,315.19 to HUD/
FHA to buy down an over-insured mortgage; and pay $357,250 to satisfy
the past due indebtedness on two (2) FHA loans MLD had previously
indemnified; as well as to indemnify HUD for any loss (past, present or
future) on six (6) FHA loans should they go into default within a
period of five (5) years from the date of their endorsement, without
admitting fault or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: MLD failed to properly document
and verify funds used as gifts; exceeded FHA's maximum mortgage amount,
resulting in two (2) over-insured loans; failed to properly analyze
liabilities; charged the borrowers a commitment fee without a lock-in
agreement guaranteeing, in writing, the interest rate and discount
points for at least fifteen (15) days prior to loan closing; and failed
to comply with settlement requirements needed to close.
15. MortgageAmerica, Inc, Birmingham, AL [Docket No. 12-1639-MR]
Action: On January 15, 2014, the Board entered into a Settlement
Agreement with MortgageAmerica, Inc. (``MortgageAmerica'') that
required MortgageAmerica to pay a civil money penalty in the amount of
$3,000, and remit all Mortgage Insurance Premiums and late fees due to
HUD on eighty-two (82) FHA mortgages, without admitting fault or
liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: MortgageAmerica failed to
either timely remit monthly mortgage insurance premiums to HUD/FHA or
to notify HUD/FHA within fifteen (15) calendar days of the termination
of the contract of mortgage insurance, the sale of the mortgage, or
both on eighty-two (82) FHA loans.
[[Page 41589]]
16. Network Capital Funding Corporation, Irvine, CA [Docket No. 13-
1542-MR]
Action: On February 4, 2014, the Board entered into a Settlement
Agreement with Network Capital Funding Corporation (``NCFC'') that
required NCFC to pay a civil money penalty in the amount of $22,000,
without admitting fault or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: NCFC submitted two (2) false
annual certifications to HUD/FHA on March 19, 2012, and February 2,
2013, with respect to whether NCFC had been involved in a proceeding,
or investigation, that could have resulted, or did result, in a civil
money penalty or other adverse action taken by a federal, state or
local government, and relating to NCFC's failure to timely remit its
fiscal year 2010 audited financial statements.
17. Precision Funding Group LLC, Cherry Hill, NJ [Docket No. 12-1651-
MR]
Action: On June 27, 2013, the Board issued a Notice of
Administrative Action withdrawing the FHA approval of Precision Funding
Group LLC (``PFG'').
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: PFG failed to submit an
acceptable Audited Financial Statement for the fiscal year ending
December 31, 2011, and failed to adequately document the source of a
borrower's closing costs.
18. R.H. Lending, Inc., Colleyville, TX [Docket No. 12-1299-MR]
Action: On June 12, 2013, the Board entered into a Settlement
Agreement with R.H. Lending, Inc. (``RHL'') that required RHL to pay a
civil money penalty in the amount of $295,000; indemnify HUD for any
loss (past, present or future) on two (2) FHA loans should they go into
default within a period of five (5) years from the date of the
agreement; and be placed on probation for a period of six (6) months,
without admitting fault or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: RHL failed to provide the
required construction-permanent mortgage disclosures and obtain
required certifications pertaining to liens; failed to obtain
construction loan agreements; failed to disburse construction-permanent
loan proceeds, in accordance with HUD requirements; failed to fully
account for the disbursement of escrowed loan proceeds; failed to
obtain written approval from the mortgagor prior to the release of
construction draw funds; failed to obtain complete sales agreements;
failed to ensure that manufactured home properties were eligible for
FHA mortgage insurance; failed to verify and properly document funds
for the mortgagor's cash investment in the property; submitted loans
for FHA mortgage insurance that exceeded the applicable loan-to-value
limits; and charged an excessive and unearned fee.
19. TXL Mortgage Corporation, Houston, TX [Docket No. 12-1660-MR]
Action: On August 7, 2013, the Board entered into a Settlement
Agreement with TXL Mortgage Corporation (``TXL'') that required TXL to
pay a civil money penalty in the amount of $124,000, without admitting
fault or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: TXL failed to ensure that
individuals originating HUD/FHA loans were exclusively employed by TXL
in the mortgage lending field; failed to meet branch requirements for
participation in the FHA mortgage insurance program; failed to ensure
that the correct mortgagee identification number was used when
originating FHA-insured mortgage loans; failed to comply with FHA
Connection (FHAC) data entry requirements regarding sponsored
originators; failed to document that it had performed adequate pre-
insurance reviews of loans it approved under the Lender Insurance (LI)
program; and failed to ensure that a mortgage loan officer's (MLO)
Nationwide Mortgage Licensing System (NMLS) unique MLO identifier was
accurately entered into FHAC.
20. U.S. Bank, N.A., Minneapolis, MN [Docket No. 12-1541-MR]
Action: On April 9, 2013, the Board entered into a Settlement
Agreement with U.S. Bank, N.A. (``USB'') that required USB to pay a
civil money penalty in the amount of $30,000, without admitting fault
or liability.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: USB failed to have FHA
multifamily mortgages serviced by an FHA approved mortgagee, and
permitted escrow funds to be used for a purpose other than that for
which they were received.
21. Webster Bank, N.A., Cheshire, CT [Docket No. 12-1645-MR]
Action: On March 11, 2013, the Board entered into a Settlement
Agreement with Webster Bank, N.A. (``Webster'') that required Webster
to pay an administrative payment in the amount of $66,500; remit a
total $705.66 to the current holder of two (2) FHA mortgages to buy-
down over-insured mortgages; and indemnify HUD for any loss (past,
present or future) on two (2) FHA loans should they go into default
within a period of five (5) years from the date of their respective
endorsement dates, without admitting fault or liability.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: Webster permitted a non-
approved lender to obtain and process loan applications, and failed to
ensure borrowers made the minimum required investment.
II. Lenders That Failed To Timely Meet Requirements for Annual
Recertification of HUD/FHA Approval
Action: The Board entered into settlement agreements with the
lenders listed below, which required the lender to pay either a $3,500
or $7,500 civil money penalty, without admitting fault or liability.
Cause: The Board took this action based upon allegations that the
lenders listed below failed to comply with the Department's annual
recertification requirements in a timely manner.
1. Coast 2 Coast Funding Group, Inc., Lake Forest, CA ($3,500) [Docket
No. 13-1520-MRT]
2. Coral Mortgage Bankers Corporation, Englewood, NJ ($3,500) [Docket
No.13-1530-MRT]
3. First National Bank at Paris, Paris, AR ($7,500) [Docket No. 13-
1520-MRT]
III. Lenders That Failed To Meet Requirements for Annual
Recertification of HUD/FHA Approval
Action: The Board voted to withdraw the FHA approval of each of the
lenders listed below for a period of one (1) year, or permanently.
Cause: The Board took this action based upon allegations that the
lenders listed below were not in compliance with the Department's
annual recertification requirements.
1. 1st Step Mortgage Group, Inc., Rockford, IL (One Year Withdrawal),
[Docket No. 13-1498-MRT]
2. Acceptance Capital Mortgage Corp., Spokane, WA (One Year
Withdrawal), [Docket No. 13-1468-MRT]
[[Page 41590]]
3. Affiliated Financial Group, LLC, Greenwood Village, CO (One Year
Withdrawal), [Docket No. 14-1664-MRT]
4. Bank of Erath, Abbeville, LA (One Year Withdrawal), [Docket No. 13-
1475-MRT]
5. Best Mortgage, Inc., Kansas City, MO (One Year Withdrawal), [Docket
No. 14-1665-MRT]
6. Capital Mortgage Funding, Southfield, MI (One Year Withdrawal),
[Docket No. 14-1666-MRT]
7. Fairway Independent Mortgage Corp. DBA Residential Mortgage Corp.,
Montgomery, AL (One Year Withdrawal), [Docket No. 13-1490-MRT]
8. Financial Mortgage, Inc., Fairfax, VA (One Year Withdrawal), [Docket
No. 14-1667-MRT]
9. First Mortgage Capital, Inc., Bayamon, PR (One Year Withdrawal),
[Docket No. 13-1470-MRT]
10. First Republic Bank, Las Vegas, NV (One Year Withdrawal), [Docket
No. 14-1668-MRT]
11. Funding, Incorporated, Houston, TX (One Year Withdrawal), [Docket
No. 13-1469-MRT]
12. HSOA Mortgage Company, Seal Beach, CA (One Year Withdrawal),
[Docket No. 14-1669-MRT]
13. Ironwood Mortgage Servicing, LLC, Huntington Beach, CA (One Year
Withdrawal), [Docket No. 14-1670-MRT]
14. Just Mortgage, Inc., Rancho Cucamonga, CA (One Year Withdrawal),
[Docket No. 14-1671-MRT]
15. Lehman Brothers Holdings, Inc., New York, NY (Permanent
Withdrawal), [Docket No. 14-1672-MRT]
16. Nationwide Mortgage and Associates, Inc., Ft. Lauderdale, FL (One
Year Withdrawal), [Docket No. 14-1673-MRT]
17. Pleasant Valley Home Mortgage Corp., Moorestown, NJ (One Year
Withdrawal), [Docket No. 14-1674-MRT]
18. TotalBank, Miami, FL (One Year Withdrawal), [Docket No.13-1476-MRT]
19. Secured Residential Funding, Inc., San Juan Capistrano, CA (One
Year Withdrawal), [Docket No. 14-1678-MRT]
20. Uniwest Mortgage Corporation, San Diego, CA (One Year Withdrawal),
[Docket No. 14-1675-MRT]
21. Westlend Financing, Inc., Dana Point, CA (One Year Withdrawal),
[Docket No. 14-1676-MRT]
22. Wilmington Trust Company, Wilmington, DE (One Year Withdrawal),
[Docket No. 14-1677-MRT]
Dated: July 10, 2014.
Carol Galante,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 2014-16722 Filed 7-15-14; 8:45 am]
BILLING CODE 4210-67-P
