Mortgagee Review Board: Administrative Actions, 18565-18568 [2019-08851]
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Federal Register / Vol. 84, No. 84 / Wednesday, May 1, 2019 / Notices
operations might improve delivery of
products or services. These collections
allow for ongoing, collaborative and
actionable communications between the
Agency and its customers and
stakeholders. It also allows feedback to
contribute directly to the improvement
of program management. Feedback
collected under this generic clearance
provides useful information, but it will
not yield data that can be generalized to
the overall population. This type of
generic clearance for qualitative
information will not be used for
quantitative information collections that
are designed to yield reliably actionable
results, such as monitoring trends over
time or documenting program
performance. Such data uses require
more rigorous designs that address: The
target population to which
generalizations will be made, the
sampling frame, the sample design
(including stratification and clustering),
the precision requirements or power
calculations that justify the proposed
sample size, the expected response rate,
methods for assessing potential
nonresponse bias, the protocols for data
collection, and any testing procedures
that were or will be undertaken prior
fielding the study. Depending on the
degree of influence the results are likely
to have, such collections may still be
eligible for submission for other generic
mechanisms that are designed to yield
quantitative results.
(5) An estimate of the total number of
respondents and the amount of time
estimated for an average respondent to
respond: 139,587 responses at 5 minutes
(0.0833 hours) per response.
(6) An estimate of the total public
burden (in hours) associated with the
collection: 11,586 annual burden hours.
Dated: April 25, 2019.
Scott Elmore,
PRA Clearance Officer, Office of the Chief
Information Officer, U.S. Immigration and
Customs Enforcement, Department of
Homeland Security.
[FR Doc. 2019–08773 Filed 4–30–19; 8:45 am]
BILLING CODE 9111–28–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
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[Docket No. FR–6163–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:
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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.
SUMMARY:
18565
2. American Financial Network, Inc.,
Brea, CA [Docket No. 17–1833–MR]
I. Civil Money Penalties, Withdrawals
of FHA Approval, Suspensions,
Probations, and Reprimands
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with American Financial Network, Inc.
(‘‘AFN’’) that required AFN to pay a
civil money penalty in the amount of
$282,000 and to refrain from making
any claim for insurance benefits and/or
indemnify FHA for all losses associated
with thirty-three FHA insured loans.
The settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: AFN (a) employed an excluded
party as a branch manager
contemporaneous with that branch
manager being subject to a five-year
debarment; (b) failed to timely notify
FHA both of a June 21, 2016 settlement
with and imposition of sanctions by the
Commonwealth of Virginia, State
Corporation Commission, Commissioner
of Financial Institutions and of a June
21, 2016 settlement with and imposition
of sanctions by the Ohio Department of
Commerce, Division of Financial
Institutions, Consumer Finance Section
in June 21, 2016; and (c) falsely certified
to HUD that 33 loans originated during
the period of the debarred branch
manager’s employment were eligible for
FHA insurance.
1. American Eagle Mortgage Company,
LLC Lorain, Ohio [Docket No. 17–1859]
3. Bank34, Alamogordo, NM [Docket
No. 17–1843–MR]
Action: On October 27, 2017, the
Board voted to accept a settlement
agreement with American Eagle
Mortgage Company, LLC (‘‘American
Eagle’’) that required American Eagle to
pay a civil money penalty in the amount
of $11,650 and to refrain from making
any claim for insurance benefits and/or
indemnify FHA for all losses associated
with one FHA insured loan. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: American Eagle failed to (a)
calculate properly the maximum
mortgage amount for a mortgage loan
submitted for endorsement; (b) pay
upfront mortgage insurance premiums
to HUD for forty-seven FHA insurance
mortgages within ten days of closing or
the disbursement date; and (c) remit
timely periodic mortgage insurance
premiums to HUD or notify HUD within
fifteen calendar days of the termination
of the contract of mortgage insurance or
of the sale of the mortgage loan for
fourteen FHA insured loans.
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with Bank34 that required Bank34 to
pay a civil money penalty in the amount
of $8,500 and to refrain from making
any claim for insurance benefits and/or
indemnify FHA for all losses associated
with one FHA insured loan. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: Bank34 (a) failed to comply with
a ‘‘case warning’’ prior to endorsing a
loan for FHA insurance; and (b)
fraudulently misrepresented that a loan
had been manually underwritten by
Bank34 when such underwriting was a
condition for endorsement.
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 tollfree Federal Information Service at (800)
877–8339.
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 HUD’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,
2017 to November 14, 2018.
SUPPLEMENTARY INFORMATION:
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4. Berkshire Bank, Pittsfield, MA
[Docket No. 17–1894–MRT]
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with Berkshire Bank (‘‘Berkshire’’) that
required Berkshire to pay a civil money
penalty in the amount of $28,559.
Contemporaneous with this action, the
Board voted to withdraw for one year
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the FHA approval of First Choice Bank
(‘‘First Choice’’), for which Berkshire
was a successor-in-interest. The
settlements did not constitute
admissions of liability or fault.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: (a) On December 2, 2016, First
Choice merged into Berkshire; however,
both Berkshire and First Choice failed to
notify FHA timely of the merger
between the entities; and (b) in October
2017, Berkshire acquired, an entity that
was not FHA approved, and Berkshire
failed to notify FHA timely of the
merger between the entities.
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5. CrossCountry Mortgage, Inc.,
Brecksville, OH [Docket No. 17–1844–
MR]
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with CrossCountry Mortgage, Inc.
(‘‘CrossCountry’’) that required
CrossCountry to pay a civil money
penalty in the amount of $71,904. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: (a) CrossCountry failed to notify
FHA timely of both a March 25, 2013
consent order with and imposition of
sanctions by the Commonwealth of
Kentucky and an October 21, 2013
settlement agreement with and
imposition of sanctions by the State of
Division of Financial Institutions for the
Ohio Department of Commerce; (b)
CrossCountry submitted a false
certification for fiscal year ended
December 31, 2013; (c) CrossCountry
failed to notify FHA timely of
unresolved findings during fiscal year
ended December 31, 2014; (d)
CrossCountry submitted a false
certification for fiscal year ended
December 31, 2014; (e) CrossCountry
failed to notify FHA timely of a January
14, 2015 Consent Order with and
imposition of sanctions by the
Commonwealth of Massachusetts; (f)
CrossCountry submitted a false
certification for fiscal year ended
December 31, 2015; (g) CrossCountry
failed to notify FHA timely of an
October 26, 2016 Consent Order with
and impositions of sanctions by the
State of California Department of
Business Oversight; (h) CrossCountry
submitted a false certification for the
fiscal year ending on December 31,
2016; and (i) CrossCountry failed to
notify FHA timely of a February 6, 2017
Cease and Desist Order with and
imposition of sanctions by the State of
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Oregon, Division of Financial
Regulation.
6. Finance of America Mortgage, LLC,
Horsham, PA [Docket No.17–1845–MR]
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with Finance of America Mortgage, LLC
(‘‘Finance of America’’) that required
Finance of America to pay a civil money
penalty in the amount of $4,500. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: Finance of America failed to
notify FHA timely of an October 10,
2016 consent order with and imposition
of sanctions by the Commonwealth of
Kentucky Department of Financial
Institutions.
7. Finance of America Mortgage, LLC,
Horsham, PA [16–cv–750 (N.D.N.Y.)]
Action: On September 28, 2018, the
Board voted to accept a settlement
agreement between the United States
and Finance of America in which
Finance of America paid the United
States $14.5 million. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged
violations of HUD/FHA requirements:
The fraudulent submission of ineligible
loans for FHA insurance and the failure
to comply with FHA quality control and
self-reporting requirements.
8. Frandsen Bank and Trust, New Ulm,
MN [Docket No. 17–1855–MR]
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with Frandsen Bank and Trust
(‘‘Frandsen’’) that required Frandsen to
pay a civil money penalty in the amount
of $4,500. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: Frandsen failed to notify FHA
timely of its March 31, 2016 merger
with another lender.
9. Freedom Mortgage Corporation,
Mount Laurel, NJ [Docket No. 17–1851–
MR]
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with Freedom Mortgage Corporation
(‘‘Freedom’’) that required Freedom to
pay a civil money penalty in the amount
of $40,000. The settlement did not
constitute an admission of liability or
fault.
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Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: (a) Freedom failed to notify FHA
timely of both an August 15, 2015
Consent Order with and imposition of
sanctions by the State of Oklahoma
Department of Consumer Credit and a
September 23, 2015 Cease and Desist
Order with and imposition of sanctions
by the Texas Department of Savings and
Mortgage Lending; (b) Freedom violated
lender approval and annual
recertification requirements in 2016 by
falsely certifying that it had not been
sanctioned; and (c) Freedom failed to
notify FHA timely of a January 26, 2016
Settlement Order with and the
imposition of sanctions by the
Commonwealth of Virginia Bureau of
Financial Institutions, a March 5, 2016
agreement with and imposition of
sanctions by the State of Tennessee
Department of Financial Institutions, an
April 15, 2016 settlement with and the
imposition of sanctions by the U.S.
Department of Justice, and a July 26,
2016 settlement agreement with and
imposition of sanctions by the State of
Ohio Department of Commerce.
10. Golden Empire Mortgage, Inc.,
Bakersfield, CA [Docket No. 17–1847–
MR]
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with Golden Empire Mortgage, Inc.
(‘‘GEM’’) that required GEM to pay a
civil money penalty in the amount of
$8,500. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: GEM failed to notify FHA timely
that it entered into a February 16, 2016
letter agreement with the State of
Hawaii Division of Financial
Institutions.
11. IberiaBank FSD, Lafayette, LA
[Docket No. 15–1903–MR]
Action: On October 27, 2017, the
Board voted to accept a settlement
agreement between the United States
and Iberia Bank FSD (‘‘IberiaBank’’) in
which IberiaBank paid the United States
$11,692,149. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of HUD/FHA requirements:
the fraudulent submission of ineligible
loans for FHA insurance, the failure to
comply with FHA quality control and
self-reporting requirements, and
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prohibited commission payments to
underwriters.
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12. Liberty Home Equity Solutions, Inc,
Rancho Cordova, CA [Docket No. 17–
1856–MR]
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with Liberty Home Equity Solutions,
Inc. (‘‘Liberty’’) that required Liberty to
pay a civil money penalty in the amount
of $4,500. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: Liberty failed to notify FHA
timely of an August 11, 2016 Agreed
Order with and imposition of sanctions
by the Department of Financial
Institutions of the Commonwealth of
Kentucky.
13. Movement Mortgage, LLC, Virginia
Beach, VA [Docket No. 17–1832–MR]
Action: On August 15, 2018, the
Board voted to accept a settlement
agreement with Movement Mortgage,
LLC (‘‘Movement’’) that required
Movement to pay a civil money penalty
in the amount of $299,750 and to refrain
from making any claim for insurance
benefits and/or indemnify FHA for all
losses associated with eighteen FHA
insured loans. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: Movement failed to (a) obtain
necessary documentation for source and
adequacy of borrower funds; (b) identify
and resolve discrepancies and/or
irregularities in the documentation used
to approve a loan; (c) consider all of a
borrower’s liabilities and potential
liabilities during underwriting; (d)
document adequately a borrower’s
income and stability of income; (e)
ensure that the subject property met the
Minimum Property Requirements or
Standards; (f) ensure that the property
was the borrower’s principal residence;
(g) ensure the borrower’s eligibility for
an FHA insured loan; (h) ensure that
documents used to underwrite the loan
were dated not in excess of 120 days; (i)
comply with HUD Quality Control
requirements; and (j) report to HUD
material findings revealed to Movement
during its Quality Control review.
14. Seckel Capital LLC, Newtown, PA
[Docket No. 17–1986–MR]
Action: On April 26, 2018, the Board
authorized the filing of civil money
penalty complaint and the permanent
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withdrawal of Seckel Capital LLC’s
(‘‘Seckel’’) FHA approval.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: Seckel (a) violated HUD
requirements by submitting fraudulent
audited financial statements for fiscal
year 2012; (b) violated HUD
requirements by submitting fraudulent
audited financial statements for fiscal
year 2013; (c) violated HUD
requirements by submitting a false
certification for fiscal year 2013; (d)
violated HUD requirements by
submitting fraudulent audited financial
statements for fiscal year 2014; (e)
violated HUD requirements by
submitting a false certification for fiscal
year 2014; (f) violated HUD
requirements by submitting fraudulent
Audit Financial Statements for fiscal
year 2015; (g) violated HUD
requirements by submitting a false
certification to HUD for fiscal year 2015;
(h) violated HUD’s requirements by
failing to remit the Upfront Mortgage
Insurance Premiums for 83 FHA insured
loans within ten calendar days from
2015 through 2017; (i) allowing an
employee to engage in dual employment
without determining that such dual
employment did not create a prohibited
conflict of interest and failing to
designate as the officer in charge a fulltime corporate officer; and (j) submitting
1,040 FHA loans for insurance that were
not eligible for FHA insurance.
15. Secure One Capital Corporation, d/
b/a The Lending Leader Newport Beach,
Ca [Docket No. 17–1837–MR]
Action: On August 15, 2018, the
Board voted to accept a settlement
agreement with Secure One Capital
Corporation (‘‘Secure’’) that required
Secure to pay a civil money penalty in
the amount of $27,436. The settlement
did not constitute an admission of
liability or fault.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: Secure (1) violated the
underwriting guidelines for FHA
insured refinance mortgage by failing to
(a) obtain and retain in the case binder
AUS Feedback Certificate; (b) document
properly a satisfactory payment history
for the borrower’s existing mortgage; (c)
include the initial URLA and 92900–A
in the case binder; and (d) ensure that
the subject property met HUD’s
minimum property requirements; and
(2) (a) failed to maintain a minimum
adjusted net worth in fiscal year 2016,
(b) failed to notify HUD timely of any
adjusted net worth deficiency during
fiscal year 2016, (c) falsely certified that
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18567
it was in compliance with all
requirements for fiscal year 2016 when
it filed for its annual recertification of
FHA approval.
16. Specialized Loan Servicing, L.L.C.,
Highlands Ranch, CO [Docket No. 17–
0849–MR]
Action: On April 26, 2018, the Board
voted to accept a settlement agreement
with Specialized Loan Servicing, L.L.C.
(‘‘SLS’’) that required SLS to pay a civil
money penalty in the amount of
$13,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following violations of
HUD/FHA requirements alleged by
HUD: SLS failed to notify FHA timely
of (a) a November 5, 2015 Settlement
Agreement with and the imposition of
sanctions by the State of Michigan
Department of Insurance and Financial
Services; and (b) a March 21, 2016
Settlement Agreement with and
imposition of sanctions by the State of
Hawaii Division of Financial
Institutions.
17. Vinson Mortgage Services, Inc., St.
Louis, MO [Docket No. 17–0849–MR]
Action: On March 15, 2016, the Board
issued a Notice of Administrative
Action through which it involuntarily
withdrew for one-year the FHA
approval of Vinson Mortgage Services,
Inc. (‘‘Vinson Mortgage’’). On January 9,
2018, through an Order on Secretarial
Review, HUD affirmed the Board’s oneyear involuntary withdrawal of Vinson
Mortgage. Vinson Mortgage’s
subsequent challenge in Federal court of
its withdrawal ended with a November
2018 settlement agreement in which
Vinson Mortgage agreed to a two-year
withdrawal of its FHA approval and to
a civil money penalty payment of
$100,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following violation of
HUD/FHA requirements alleged by
HUD: Vinson Mortgage failed to meet
the requirements for annual
recertification of HUD/FHA approval.
II. Lenders That Failed To Timely Meet
Requirements for Annual
Recertification of HUD/FHA Approval
but Came Into Compliance
Action: The Board entered into
settlement agreements with the
following lenders, which required the
lender to pay a civil money penalty
without admitting fault or liability.
Cause: The Board took these actions
based upon allegations that the listed
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lenders failed to comply with HUD’s
annual recertification requirements in a
timely manner.
1. American Lending, Costa Mesa, CA,
($4,500) [Docket No. 17–1901–MRT]
2. American Mortgage Company, North
Platte, NE ($4,500) [Docket No. 17–
1877–MRT]
3. Bank of the Rockies N.A., White
Sulphur Spring, MT ($4,500)
[Docket No. 17–1887–MRT]
4. Citizens Trust Bank, Atlanta, GA
($9,468) [Docket No. 17–1981–MRT]
5. Columbia Bank, Lake City, FL
($4,500) [Docket No. 17–1921–MRT]
6. Cross River Bank, Teaneck, NJ
($9,468) [Docket No. 17–1909–MRT]
7. Denali Federal Credit Union,
Anchorage, AK ($4,500) [Docket No.
17–1984–MRT]
8. First Commerce Credit Union,
Tallahassee, FL ($4,500) [Docket
No. 17–1721–MRT]
9. FirstCity Bank of Commerce, Palm
Beach Gardens, FL ($9,623) [Docket
No. 18–1838–MRT]
10. Home Federal Savings and Loan,
Grand Island, NE ($4,500) [Docket
No. 17–2004–MRT]
11. Legends Bank, Clarksville, TN
($9,468) [Docket No. 17–1910–MRT]
12. LenderLive Network, LLC, Denver,
CO ($4,500) [Docket No. 17–1977–
MRT]
13. Lyons Federal Bank, Lyons, KS
($4,500) [Docket No. 17–1730–MRT]
14. Midwest Regional Bank, Festus, MO
($4,500) [Docket No. 17–1874–MRT]
15. Pinnacle Federal Credit Union,
Edison, NJ ($4,500) [Docket No. 17–
1978–MRT]
16. Prime Mortgage Lending Inc., Apex,
NC ($4,500) [Docket No. 17–1897–
MRT]
17. Progressive National Bank of De
Soto, Mansfield, LA ($4,500)
[Docket No. 17–1892–MRT]
18. Service First Federal Credit Union,
Sioux Falls, SD ($4,500) [Docket
No. 17–1719–MRT]
19. SouthStar Bank, Moulton, TX
($4,500) [Docket No. 17–1867–MRT]
20. Thompson Kane & Company, LLC,
Madison, WI ($4,500) [Docket No.
17–1888–MRT]
21. US Home Capital LLC, East
Brunswick, NJ ($9,468) [Docket No.
17–1879–MRT]
22. Waterford Bank NA, Toledo, OH
($4,500) [Docket No. 17–1905–MRT]
23. Wendover Financial Services,
Greensboro, NC ($9,648) [Docket
No. 17–1854–MRT]
24. Western National Bank Cass Lake,
Cass Lake, MN ($4,500) [Docket No.
17–1920–MRT]
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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.
Cause: The Board took this action
based upon allegations that the lenders
listed below were not in compliance
with HUD’s annual recertification
requirements.
1. Full Access Mortgage Inc., La Vista,
NE [Docket No. 18–1865–MRT]
2. Guaranty Bank FSB, Brown Deer, WI
[Docket No. 19–1903–MRT]
3. Key Mortgage Company Inc.,
Columbia, KY [Docket No. 17–
1882–MRT]
4. Mortgage Enterprise LTD, Carle Place,
NY [Docket No. 19–1904–MRT]
5. Proficio Bank, Cottonwood Heights,
UT [Docket No. 19–1905–MRT]
6. Ukranian Selfreliance Federal Credit
Union, Philadelphia, PA [Docket
No. 19–1906–MRT]
7. Urban Fulfillment Services, LLC.,
Highlands Ranch, CO [Docket No.
19–1907–MRT]
Dated: April 18, 2019.
Brian Montgomery,
Assistant Secretary for Housing/FHA
Commissioner, Chairman, Mortgagee Review
Board.
[FR Doc. 2019–08851 Filed 4–30–19; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–7014–N–13]
60-Day Notice of Proposed Information
Collection: Pay for Success Pilot
Application Requirements; Withdrawal
AGENCY:
Office of the General Counsel,
HUD.
ACTION:
Notice.
On April 25, 2019 at 84 FR
17416, HUD published a 60-day notice
of proposed information collection
entitled, ‘‘Pay for Success Pilot
Application Requirements’’ (FR–7014–
N–12) (FR Doc. 2019–08366). The notice
contained typographical errors and was
published inadvertently. Today’s notice
withdraws the 60-day notice published
on April 25, 2019. HUD will publish a
corrected version of the notice in the
Federal Register at a later date.
FOR FURTHER INFORMATION CONTACT: Josh
Geyer, Office of Environment and
Energy, Department of Housing and
Urban Development, 451 7th Street SW,
Washington, DC 20410; email
Joshua.m.geyer@hud.gov or telephone
(415) 489–6418. This is not a toll-free
SUMMARY:
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number. Persons with hearing or speech
impairments may access this number
through TTY by calling the toll-free
Federal Relay Service at (800) 877–8339.
Dated: April 25, 2019.
Aaron Santa Anna,
Assistant General Counsel for Regulations.
[FR Doc. 2019–08852 Filed 4–30–19; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
[FWS–R2–ES–2019–N041;
FXES11130200000–190–FF02ENEH00]
Endangered Species and Threatened
Species; Receipt of Recovery Permit
Applications
Fish and Wildlife Service,
Interior.
ACTION: Notice of receipt of permit
applications; request for comments.
AGENCY:
We, the U.S. Fish and
Wildlife Service, have received
applications for permits to conduct
activities intended to enhance the
propagation or survival of endangered
species under the Endangered Species
Act of 1973, as amended. We invite the
public and local, State, Tribal, and
Federal agencies to comment on these
applications. Before issuing any of the
requested permits, we will take into
consideration any information that we
receive during the public comment
period.
SUMMARY:
We must receive your written
comments by May 31, 2019.
ADDRESSES: Document availability and
comment submission: Submit requests
for copies of the applications and
related documents and submit any
comments by one of the following
methods. All requests and comments
should specify the applicant name(s)
and application number(s) (e.g.,
TEXXXXXX):
• Email: susan_jacobsen@fws.gov.
• U.S. Mail: Susan Jacobsen, Chief,
Classification and Recovery Division,
U.S. Fish and Wildlife Service, P.O. Box
1306, Albuquerque, NM 87103.
FOR FURTHER INFORMATION CONTACT:
Vanessa Burge, Recovery Permits
Coordinator, Ecological Services, 505–
248–6641 (phone); fw2_te_permits@
fws.gov (email). Individuals who are
hearing or speech impaired may call the
Federal Relay Service at 1–800–877–
8339 for TTY assistance.
SUPPLEMENTARY INFORMATION:
DATES:
E:\FR\FM\01MYN1.SGM
01MYN1
]]>Agencies
[Federal Register Volume 84, Number 84 (Wednesday, May 1, 2019)]
[Notices]
[Pages 18565-18568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08851]
=======================================================================
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6163-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.
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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 HUD'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, 2017 to November 14, 2018.
I. Civil Money Penalties, Withdrawals of FHA Approval, Suspensions,
Probations, and Reprimands
1. American Eagle Mortgage Company, LLC Lorain, Ohio [Docket No. 17-
1859]
Action: On October 27, 2017, the Board voted to accept a settlement
agreement with American Eagle Mortgage Company, LLC (``American
Eagle'') that required American Eagle to pay a civil money penalty in
the amount of $11,650 and to refrain from making any claim for
insurance benefits and/or indemnify FHA for all losses associated with
one FHA insured loan. The settlement did not constitute an admission of
liability or fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: American Eagle failed to (a)
calculate properly the maximum mortgage amount for a mortgage loan
submitted for endorsement; (b) pay upfront mortgage insurance premiums
to HUD for forty-seven FHA insurance mortgages within ten days of
closing or the disbursement date; and (c) remit timely periodic
mortgage insurance premiums to HUD or notify HUD within fifteen
calendar days of the termination of the contract of mortgage insurance
or of the sale of the mortgage loan for fourteen FHA insured loans.
2. American Financial Network, Inc., Brea, CA [Docket No. 17-1833-MR]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with American Financial Network, Inc. (``AFN'') that required
AFN to pay a civil money penalty in the amount of $282,000 and to
refrain from making any claim for insurance benefits and/or indemnify
FHA for all losses associated with thirty-three FHA insured loans. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: AFN (a) employed an excluded
party as a branch manager contemporaneous with that branch manager
being subject to a five-year debarment; (b) failed to timely notify FHA
both of a June 21, 2016 settlement with and imposition of sanctions by
the Commonwealth of Virginia, State Corporation Commission,
Commissioner of Financial Institutions and of a June 21, 2016
settlement with and imposition of sanctions by the Ohio Department of
Commerce, Division of Financial Institutions, Consumer Finance Section
in June 21, 2016; and (c) falsely certified to HUD that 33 loans
originated during the period of the debarred branch manager's
employment were eligible for FHA insurance.
3. Bank34, Alamogordo, NM [Docket No. 17-1843-MR]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with Bank34 that required Bank34 to pay a civil money penalty
in the amount of $8,500 and to refrain from making any claim for
insurance benefits and/or indemnify FHA for all losses associated with
one FHA insured loan. The settlement did not constitute an admission of
liability or fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: Bank34 (a) failed to comply
with a ``case warning'' prior to endorsing a loan for FHA insurance;
and (b) fraudulently misrepresented that a loan had been manually
underwritten by Bank34 when such underwriting was a condition for
endorsement.
4. Berkshire Bank, Pittsfield, MA [Docket No. 17-1894-MRT]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with Berkshire Bank (``Berkshire'') that required Berkshire
to pay a civil money penalty in the amount of $28,559. Contemporaneous
with this action, the Board voted to withdraw for one year
[[Page 18566]]
the FHA approval of First Choice Bank (``First Choice''), for which
Berkshire was a successor-in-interest. The settlements did not
constitute admissions of liability or fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: (a) On December 2, 2016, First
Choice merged into Berkshire; however, both Berkshire and First Choice
failed to notify FHA timely of the merger between the entities; and (b)
in October 2017, Berkshire acquired, an entity that was not FHA
approved, and Berkshire failed to notify FHA timely of the merger
between the entities.
5. CrossCountry Mortgage, Inc., Brecksville, OH [Docket No. 17-1844-MR]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with CrossCountry Mortgage, Inc. (``CrossCountry'') that
required CrossCountry to pay a civil money penalty in the amount of
$71,904. The settlement did not constitute an admission of liability or
fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: (a) CrossCountry failed to
notify FHA timely of both a March 25, 2013 consent order with and
imposition of sanctions by the Commonwealth of Kentucky and an October
21, 2013 settlement agreement with and imposition of sanctions by the
State of Division of Financial Institutions for the Ohio Department of
Commerce; (b) CrossCountry submitted a false certification for fiscal
year ended December 31, 2013; (c) CrossCountry failed to notify FHA
timely of unresolved findings during fiscal year ended December 31,
2014; (d) CrossCountry submitted a false certification for fiscal year
ended December 31, 2014; (e) CrossCountry failed to notify FHA timely
of a January 14, 2015 Consent Order with and imposition of sanctions by
the Commonwealth of Massachusetts; (f) CrossCountry submitted a false
certification for fiscal year ended December 31, 2015; (g) CrossCountry
failed to notify FHA timely of an October 26, 2016 Consent Order with
and impositions of sanctions by the State of California Department of
Business Oversight; (h) CrossCountry submitted a false certification
for the fiscal year ending on December 31, 2016; and (i) CrossCountry
failed to notify FHA timely of a February 6, 2017 Cease and Desist
Order with and imposition of sanctions by the State of Oregon, Division
of Financial Regulation.
6. Finance of America Mortgage, LLC, Horsham, PA [Docket No.17-1845-MR]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with Finance of America Mortgage, LLC (``Finance of
America'') that required Finance of America to pay a civil money
penalty in the amount of $4,500. The settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: Finance of America failed to
notify FHA timely of an October 10, 2016 consent order with and
imposition of sanctions by the Commonwealth of Kentucky Department of
Financial Institutions.
7. Finance of America Mortgage, LLC, Horsham, PA [16-cv-750 (N.D.N.Y.)]
Action: On September 28, 2018, the Board voted to accept a
settlement agreement between the United States and Finance of America
in which Finance of America paid the United States $14.5 million. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of HUD/FHA requirements: The fraudulent submission of
ineligible loans for FHA insurance and the failure to comply with FHA
quality control and self-reporting requirements.
8. Frandsen Bank and Trust, New Ulm, MN [Docket No. 17-1855-MR]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with Frandsen Bank and Trust (``Frandsen'') that required
Frandsen to pay a civil money penalty in the amount of $4,500. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: Frandsen failed to notify FHA
timely of its March 31, 2016 merger with another lender.
9. Freedom Mortgage Corporation, Mount Laurel, NJ [Docket No. 17-1851-
MR]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with Freedom Mortgage Corporation (``Freedom'') that required
Freedom to pay a civil money penalty in the amount of $40,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: (a) Freedom failed to notify
FHA timely of both an August 15, 2015 Consent Order with and imposition
of sanctions by the State of Oklahoma Department of Consumer Credit and
a September 23, 2015 Cease and Desist Order with and imposition of
sanctions by the Texas Department of Savings and Mortgage Lending; (b)
Freedom violated lender approval and annual recertification
requirements in 2016 by falsely certifying that it had not been
sanctioned; and (c) Freedom failed to notify FHA timely of a January
26, 2016 Settlement Order with and the imposition of sanctions by the
Commonwealth of Virginia Bureau of Financial Institutions, a March 5,
2016 agreement with and imposition of sanctions by the State of
Tennessee Department of Financial Institutions, an April 15, 2016
settlement with and the imposition of sanctions by the U.S. Department
of Justice, and a July 26, 2016 settlement agreement with and
imposition of sanctions by the State of Ohio Department of Commerce.
10. Golden Empire Mortgage, Inc., Bakersfield, CA [Docket No. 17-1847-
MR]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with Golden Empire Mortgage, Inc. (``GEM'') that required GEM
to pay a civil money penalty in the amount of $8,500. The settlement
did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: GEM failed to notify FHA timely
that it entered into a February 16, 2016 letter agreement with the
State of Hawaii Division of Financial Institutions.
11. IberiaBank FSD, Lafayette, LA [Docket No. 15-1903-MR]
Action: On October 27, 2017, the Board voted to accept a settlement
agreement between the United States and Iberia Bank FSD
(``IberiaBank'') in which IberiaBank paid the United States
$11,692,149. The settlement did not constitute an admission of
liability or fault.
Cause: The Board took this action based on the following alleged
violations of HUD/FHA requirements: the fraudulent submission of
ineligible loans for FHA insurance, the failure to comply with FHA
quality control and self-reporting requirements, and
[[Page 18567]]
prohibited commission payments to underwriters.
12. Liberty Home Equity Solutions, Inc, Rancho Cordova, CA [Docket No.
17-1856-MR]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with Liberty Home Equity Solutions, Inc. (``Liberty'') that
required Liberty to pay a civil money penalty in the amount of $4,500.
The settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: Liberty failed to notify FHA
timely of an August 11, 2016 Agreed Order with and imposition of
sanctions by the Department of Financial Institutions of the
Commonwealth of Kentucky.
13. Movement Mortgage, LLC, Virginia Beach, VA [Docket No. 17-1832-MR]
Action: On August 15, 2018, the Board voted to accept a settlement
agreement with Movement Mortgage, LLC (``Movement'') that required
Movement to pay a civil money penalty in the amount of $299,750 and to
refrain from making any claim for insurance benefits and/or indemnify
FHA for all losses associated with eighteen FHA insured loans. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: Movement failed to (a) obtain
necessary documentation for source and adequacy of borrower funds; (b)
identify and resolve discrepancies and/or irregularities in the
documentation used to approve a loan; (c) consider all of a borrower's
liabilities and potential liabilities during underwriting; (d) document
adequately a borrower's income and stability of income; (e) ensure that
the subject property met the Minimum Property Requirements or
Standards; (f) ensure that the property was the borrower's principal
residence; (g) ensure the borrower's eligibility for an FHA insured
loan; (h) ensure that documents used to underwrite the loan were dated
not in excess of 120 days; (i) comply with HUD Quality Control
requirements; and (j) report to HUD material findings revealed to
Movement during its Quality Control review.
14. Seckel Capital LLC, Newtown, PA [Docket No. 17-1986-MR]
Action: On April 26, 2018, the Board authorized the filing of civil
money penalty complaint and the permanent withdrawal of Seckel Capital
LLC's (``Seckel'') FHA approval.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: Seckel (a) violated HUD
requirements by submitting fraudulent audited financial statements for
fiscal year 2012; (b) violated HUD requirements by submitting
fraudulent audited financial statements for fiscal year 2013; (c)
violated HUD requirements by submitting a false certification for
fiscal year 2013; (d) violated HUD requirements by submitting
fraudulent audited financial statements for fiscal year 2014; (e)
violated HUD requirements by submitting a false certification for
fiscal year 2014; (f) violated HUD requirements by submitting
fraudulent Audit Financial Statements for fiscal year 2015; (g)
violated HUD requirements by submitting a false certification to HUD
for fiscal year 2015; (h) violated HUD's requirements by failing to
remit the Upfront Mortgage Insurance Premiums for 83 FHA insured loans
within ten calendar days from 2015 through 2017; (i) allowing an
employee to engage in dual employment without determining that such
dual employment did not create a prohibited conflict of interest and
failing to designate as the officer in charge a full-time corporate
officer; and (j) submitting 1,040 FHA loans for insurance that were not
eligible for FHA insurance.
15. Secure One Capital Corporation, d/b/a The Lending Leader Newport
Beach, Ca [Docket No. 17-1837-MR]
Action: On August 15, 2018, the Board voted to accept a settlement
agreement with Secure One Capital Corporation (``Secure'') that
required Secure to pay a civil money penalty in the amount of $27,436.
The settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: Secure (1) violated the
underwriting guidelines for FHA insured refinance mortgage by failing
to (a) obtain and retain in the case binder AUS Feedback Certificate;
(b) document properly a satisfactory payment history for the borrower's
existing mortgage; (c) include the initial URLA and 92900-A in the case
binder; and (d) ensure that the subject property met HUD's minimum
property requirements; and (2) (a) failed to maintain a minimum
adjusted net worth in fiscal year 2016, (b) failed to notify HUD timely
of any adjusted net worth deficiency during fiscal year 2016, (c)
falsely certified that it was in compliance with all requirements for
fiscal year 2016 when it filed for its annual recertification of FHA
approval.
16. Specialized Loan Servicing, L.L.C., Highlands Ranch, CO [Docket No.
17-0849-MR]
Action: On April 26, 2018, the Board voted to accept a settlement
agreement with Specialized Loan Servicing, L.L.C. (``SLS'') that
required SLS to pay a civil money penalty in the amount of $13,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following violations
of HUD/FHA requirements alleged by HUD: SLS failed to notify FHA timely
of (a) a November 5, 2015 Settlement Agreement with and the imposition
of sanctions by the State of Michigan Department of Insurance and
Financial Services; and (b) a March 21, 2016 Settlement Agreement with
and imposition of sanctions by the State of Hawaii Division of
Financial Institutions.
17. Vinson Mortgage Services, Inc., St. Louis, MO [Docket No. 17-0849-
MR]
Action: On March 15, 2016, the Board issued a Notice of
Administrative Action through which it involuntarily withdrew for one-
year the FHA approval of Vinson Mortgage Services, Inc. (``Vinson
Mortgage''). On January 9, 2018, through an Order on Secretarial
Review, HUD affirmed the Board's one-year involuntary withdrawal of
Vinson Mortgage. Vinson Mortgage's subsequent challenge in Federal
court of its withdrawal ended with a November 2018 settlement agreement
in which Vinson Mortgage agreed to a two-year withdrawal of its FHA
approval and to a civil money penalty payment of $100,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following violation
of HUD/FHA requirements alleged by HUD: Vinson Mortgage failed to meet
the requirements for annual recertification of HUD/FHA approval.
II. Lenders That Failed To Timely Meet Requirements for Annual
Recertification of HUD/FHA Approval but Came Into Compliance
Action: The Board entered into settlement agreements with the
following lenders, which required the lender to pay a civil money
penalty without admitting fault or liability.
Cause: The Board took these actions based upon allegations that the
listed
[[Page 18568]]
lenders failed to comply with HUD's annual recertification requirements
in a timely manner.
1. American Lending, Costa Mesa, CA, ($4,500) [Docket No. 17-1901-MRT]
2. American Mortgage Company, North Platte, NE ($4,500) [Docket No. 17-
1877-MRT]
3. Bank of the Rockies N.A., White Sulphur Spring, MT ($4,500) [Docket
No. 17-1887-MRT]
4. Citizens Trust Bank, Atlanta, GA ($9,468) [Docket No. 17-1981-MRT]
5. Columbia Bank, Lake City, FL ($4,500) [Docket No. 17-1921-MRT]
6. Cross River Bank, Teaneck, NJ ($9,468) [Docket No. 17-1909-MRT]
7. Denali Federal Credit Union, Anchorage, AK ($4,500) [Docket No. 17-
1984-MRT]
8. First Commerce Credit Union, Tallahassee, FL ($4,500) [Docket No.
17-1721-MRT]
9. FirstCity Bank of Commerce, Palm Beach Gardens, FL ($9,623) [Docket
No. 18-1838-MRT]
10. Home Federal Savings and Loan, Grand Island, NE ($4,500) [Docket
No. 17-2004-MRT]
11. Legends Bank, Clarksville, TN ($9,468) [Docket No. 17-1910-MRT]
12. LenderLive Network, LLC, Denver, CO ($4,500) [Docket No. 17-1977-
MRT]
13. Lyons Federal Bank, Lyons, KS ($4,500) [Docket No. 17-1730-MRT]
14. Midwest Regional Bank, Festus, MO ($4,500) [Docket No. 17-1874-MRT]
15. Pinnacle Federal Credit Union, Edison, NJ ($4,500) [Docket No. 17-
1978-MRT]
16. Prime Mortgage Lending Inc., Apex, NC ($4,500) [Docket No. 17-1897-
MRT]
17. Progressive National Bank of De Soto, Mansfield, LA ($4,500)
[Docket No. 17-1892-MRT]
18. Service First Federal Credit Union, Sioux Falls, SD ($4,500)
[Docket No. 17-1719-MRT]
19. SouthStar Bank, Moulton, TX ($4,500) [Docket No. 17-1867-MRT]
20. Thompson Kane & Company, LLC, Madison, WI ($4,500) [Docket No. 17-
1888-MRT]
21. US Home Capital LLC, East Brunswick, NJ ($9,468) [Docket No. 17-
1879-MRT]
22. Waterford Bank NA, Toledo, OH ($4,500) [Docket No. 17-1905-MRT]
23. Wendover Financial Services, Greensboro, NC ($9,648) [Docket No.
17-1854-MRT]
24. Western National Bank Cass Lake, Cass Lake, MN ($4,500) [Docket No.
17-1920-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.
Cause: The Board took this action based upon allegations that the
lenders listed below were not in compliance with HUD's annual
recertification requirements.
1. Full Access Mortgage Inc., La Vista, NE [Docket No. 18-1865-MRT]
2. Guaranty Bank FSB, Brown Deer, WI [Docket No. 19-1903-MRT]
3. Key Mortgage Company Inc., Columbia, KY [Docket No. 17-1882-MRT]
4. Mortgage Enterprise LTD, Carle Place, NY [Docket No. 19-1904-MRT]
5. Proficio Bank, Cottonwood Heights, UT [Docket No. 19-1905-MRT]
6. Ukranian Selfreliance Federal Credit Union, Philadelphia, PA [Docket
No. 19-1906-MRT]
7. Urban Fulfillment Services, LLC., Highlands Ranch, CO [Docket No.
19-1907-MRT]
Dated: April 18, 2019.
Brian Montgomery,
Assistant Secretary for Housing/FHA Commissioner, Chairman, Mortgagee
Review Board.
[FR Doc. 2019-08851 Filed 4-30-19; 8:45 am]
BILLING CODE 4210-67-P
