Credit Watch Termination Initiative Termination of Direct Endorsement (DE) Approval, 1820-1821 [2020-00321]

Download as PDF 1820 Federal Register / Vol. 85, No. 8 / Monday, January 13, 2020 / Notices the recommendation, should be provided and discussed to the extent feasible. The Act requires that an administering organization administer the process for the MHCC’s development and interpretation of the Federal Standards and Procedural and Enforcement Regulations. The administering organization that has been selected by HUD to administer this process is Home Innovation Research Labs Inc. This Notice requests that proposed revisions to the Federal standards be submitted to the MHCC for consideration through the administering organization, Home Innovation Research Labs. This organization will be responsible for ensuring delivery of all appropriately prepared proposed changes to the MHCC for its review and consideration. Dated: January 6, 2020. John L. Garvin, General Deputy Assistant Secretary of Housing. [FR Doc. 2020–00320 Filed 1–10–20; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [FR–6193–N–01] Credit Watch Termination Initiative Termination of Direct Endorsement (DE) Approval Office of the Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Development (HUD). ACTION: Notice. AGENCY: This notice advises of the cause and effect of termination of Direct Endorsement (DE) approval taken by HUD’s Federal Housing Administration (FHA) against HUD-approved mortgagees through the FHA Credit Watch Termination Initiative. This notice includes a list of mortgagees that have had their DE Approval terminated. FOR FURTHER INFORMATION CONTACT: Quality Assurance Division, Office of Housing, Department of Housing and Urban Development, 451 Seventh Street SW, Room B133–P3214, Washington, khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: Mortgagee name CityWorth Mortgage LLC CityWorth Mortgage LLC CityWorth Mortgage LLC VerDate Sep<11>2014 DC 20410–8000; telephone (202) 708– 5997 (this is not a toll-free number). Persons with hearing or speech impairments may access that number through TTY by calling the Federal Relay at (800) 877–8339 (this is a tollfree number). HUD has the authority to address deficiencies in the performance of lenders’ loans as provided in HUD’s mortgagee approval regulations at 24 CFR 202.3. On May 17, 1999, HUD published a notice (64 FR 26769) on its procedures for terminating Origination Approval Agreements with FHA lenders and placement of FHA lenders on Credit Watch status (an evaluation period). In the notice, HUD advised that it would publish in the Federal Register a list of mortgagees that have had their Approval Agreements terminated. HUD Handbook 4000.1 section V.E.3.a.iii outlines current procedures for terminating Underwriting Authority of Direct Endorsement mortgagees. Termination of Direct Endorsement Approval: HUD approval of a DE mortgagee authorizes the mortgagee to underwrite single family mortgage loans and submit them to FHA for insurance endorsement. The approval may be terminated on the basis of poor performance of FHA-insured mortgage loans underwritten by the mortgagee. The termination of a mortgagee’s DE Approval is separate and apart from any action taken by HUD’s Mortgagee Review Board under HUD regulations at 24 CFR part 25. Cause: HUD regulations permit HUD to terminate the DE Approval of any mortgagee having a default and claim rate for loans endorsed within the preceding 24 months that exceeds 200 percent of the default and claim rate within the geographic area served by a HUD field office, and that exceeds the national default and claim rate. Effect: Termination of DE Approval precludes the mortgagee from underwriting FHA-insured single-family mortgages within the HUD field office jurisdiction(s) listed in this notice. Mortgagees authorized to hold or service FHA-insured mortgages may continue to do so. SUPPLEMENTARY INFORMATION: Loans that closed or were approved before the termination became effective may be submitted for insurance endorsement. Approved loans are those already underwritten and approved by a DE underwriter and cases covered by a firm commitment issued by HUD. Cases at earlier stages of processing cannot be submitted for insurance by the terminated mortgagee; however, the cases may be transferred for completion of processing and underwriting to another mortgagee with DE Approval in that geographic area. Mortgagees must continue to pay existing insurance premiums and meet all other obligations associated with insured mortgages. A terminated mortgagee may apply for reinstatement if their DE Approval in the affected area or areas has been terminated for at least six months and the mortgagee continues to be an approved mortgagee meeting the requirements of 24 CFR 202.5, 202.6, 202.7, 202.10 and 202.12. The mortgagee’s application for reinstatement must be in a format prescribed by the Secretary and signed by the mortgagee. In addition, the application must be accompanied by an independent analysis of the terminated office’s operations as well as its mortgage production, specifically including the FHA-insured mortgages cited in its termination notice. This independent analysis shall identify the underlying cause for the mortgagee’s high default and claim rate. The analysis must be prepared by an independent Certified Public Accountant (CPA) qualified to perform audits under Government Auditing Standards as provided by the Government Accountability Office. The mortgagee must also submit a written corrective action plan to address each of the issues identified in the CPA’s report, along with evidence that the plan has been implemented. The application for reinstatement must be submitted through the Lender Electronic Assessment Portal (LEAP). The application must be accompanied by the CPA’s report and the corrective action plan. Action: The following mortgagees have had their DE Approval terminated by HUD: Termination effective date Homeownership center Mortgagee home office address HUD office jurisdiction 11781 Lee Jackson Memorial Highway, Fairfax, VA 22033. 11781 Lee Jackson Memorial Highway, Fairfax, VA 22033. 11781 Lee Jackson Memorial Highway, Fairfax, VA 22033. Atlanta ............................. 12/5/19 Philadelphia. Greensboro ..................... 12/5/19 Philadelphia. Pittsburgh ........................ 12/5/19 Philadelphia. 16:32 Jan 10, 2020 Jkt 250001 PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 E:\FR\FM\13JAN1.SGM 13JAN1 1821 Federal Register / Vol. 85, No. 8 / Monday, January 13, 2020 / Notices Mortgagee name CityWorth Mortgage LLC The Home Lending Group LLC. 11781 Lee Jackson Memorial Highway, Fairfax, VA 22033. 215 Katherine Drive Flowood, MS 39232 ................ Washington ..................... 12/5/19 Philadelphia. Jackson ........................... 12/5/19 Atlanta. 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: HUD Desk Officer, Office of Management and Budget, New Executive Office Building, Washington, DC 20503; fax:202–395–5806, Email: OIRA Submission@omb.eop.gov ADDRESSES: [FR Doc. 2020–00321 Filed 1–10–20; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FOR FURTHER INFORMATION CONTACT: [Docket No. FR–7011–N–62] 30-Day Notice of Proposed Information Collection: Emergency Solutions Grant Data Collection; OMB #2506–0089 Office of the Chief Information Officer, 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 30 days of public comment. SUMMARY: Comments Due Date: February 12, 2020. DATES: khammond on DSKJM1Z7X2PROD with NOTICES Homeownership center HUD office jurisdiction Dated: January 6, 2020. John L. Garvin, General Deputy Assistant Secretary for Housing. Anna P.Guido, Reports Management Officer, QMAC, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; email her at Anna.P.Guido@hud.gov or telephone 202–402–5535. This is not a toll-free number. Person with hearing or speech impairments may access this number through TTY by calling the toll-free Federal Relay Service at (800) 877–8339. Copies of available documents submitted to OMB may be obtained from Ms. Guido. This notice informs the public that HUD is seeking approval from OMB for the information collection described in Section A. The Federal Register notice that solicited public comment on the information collection for a period of 60 SUPPLEMENTARY INFORMATION: days was published on October 11, 2019 at 84 FR 54917. A. Overview of Information Collection Title of Information Collection: Emergency Solutions Grant Data Collection. OMB Approval Number: 2506–0089. Type of Request: Reinstatement of currently approved collection. Form Number: None. Description of the need for the information and proposed use: This submission is to request an extension of a currently approved collection for the reporting burden associated with program and recordkeeping requirements that Emergency Solutions Grants (ESG) program recipients will be expected to implement and retain. This submission is limited to the recordkeeping burden under the ESG entitlement program. To see the regulations for the ESG program and applicable supplementary documents, visit the ESG page on the HUD Exchange at https:// www.hudexchange.info/programs/esg/. The statutory provisions and the implementing interim regulations (also found at 24 CFR 576) that govern the program require these recordkeeping requirements. Information collection Number of respondents Response frequency (average) Total annual responses Burden hours per response Total annual hours A B C D E F 576.100(b)(2) Emergency Shelter and Street Outreach Cap ........................... 576.400(a) Consultation with Continuums of Care ....................................... 576.400(b) Coordination with other Targeted Homeless Services .................... 576.400(c) System and Program Coordination with Mainstream Resources ..... 576.400(d) Centralized or Coordinated Assessment ......................................... 576.400(e) Written Standards for Determining the Amount of Assistance ........ 576.400(f) Participation in HMIS ............. 576.401(a) Initial Evaluation ................... 576.401(b) Recertification ....................... 576.401(d) Connection to Mainstream Resources ............................................ 576.401(e) Housing retention plan ......... 576.402 Terminating Assistance ............. 576.403 Habitability review ..................... 576.405 Homeless Participation ............. 576.500 Recordkeeping Requirements .. 576.501(b) Remedial Actions .................. 576.501(c) Recipient Sanctions .............. 576.501(c) Subrecipient Response ......... VerDate Sep<11>2014 Termination effective date Mortgagee home office address 16:32 Jan 10, 2020 Jkt 250001 Hourly rate ** Burden cost per instrument 360.00 1.00 360.00 1.00 360.00 39.96 14,385.60 360.00 1.00 360.00 6.00 2,160.00 39.96 86,313.60 2,360.00 1.00 2,360.00 8.00 18,880.00 39.96 754,444.80 2,360.00 1.00 2,360.00 16.00 37,760.00 39.96 1,508,889.60 2,000.00 1.00 2,000.00 3.00 6,000.00 39.96 239,760.00 808.00 78,000.00 50,000.00 20,000.00 1.00 1.00 1.00 2.00 808.00 78,000.00 50,000.00 40,000.00 5.00 0.50 1.00 0.50 4,040.00 39,000.00 50,000.00 20,000.00 39.96 39.96 39.96 39.96 161,438.40 1,558,440.00 1,998,000.00 799,200.00 78,000.00 50,000.00 808.00 52,000.00 2,360.00 2,360.00 20.00 360.00 2,000.00 3.00 1.00 1.00 1.00 12.00 1.00 1.00 1.00 1.00 234,000.00 50,000.00 808.00 52,000.00 28,320.00 2,360.00 20.00 360.00 2,000.00 0.25 .75 4.00 0.60 1.00 12.75 8.00 12.00 8.00 58,500.00 37,500.00 3,232.00 31,200.00 28,320.00 30,090.00 160.00 4,320.00 16,000.00 39.96 39.96 39.96 39.96 39.96 39.96 39.96 39.96 39.96 2,337,660.00 1,498,500.00 129,150.72 1,246,752.00 1,131,667.20 1,202,396.40 6,393.60 172,627.20 639,360.00 PO 00000 Frm 00022 Fmt 4703 Sfmt 4703 E:\FR\FM\13JAN1.SGM 13JAN1

Agencies

[Federal Register Volume 85, Number 8 (Monday, January 13, 2020)]
[Notices]
[Pages 1820-1821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00321]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[FR-6193-N-01]


Credit Watch Termination Initiative Termination of Direct 
Endorsement (DE) Approval

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, Department of Housing and Urban Development (HUD).

ACTION: Notice.

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

SUMMARY: This notice advises of the cause and effect of termination of 
Direct Endorsement (DE) approval taken by HUD's Federal Housing 
Administration (FHA) against HUD-approved mortgagees through the FHA 
Credit Watch Termination Initiative. This notice includes a list of 
mortgagees that have had their DE Approval terminated.

FOR FURTHER INFORMATION CONTACT: Quality Assurance Division, Office of 
Housing, Department of Housing and Urban Development, 451 Seventh 
Street SW, Room B133-P3214, Washington, DC 20410-8000; telephone (202) 
708-5997 (this is not a toll-free number). Persons with hearing or 
speech impairments may access that number through TTY by calling the 
Federal Relay at (800) 877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION: HUD has the authority to address 
deficiencies in the performance of lenders' loans as provided in HUD's 
mortgagee approval regulations at 24 CFR 202.3. On May 17, 1999, HUD 
published a notice (64 FR 26769) on its procedures for terminating 
Origination Approval Agreements with FHA lenders and placement of FHA 
lenders on Credit Watch status (an evaluation period). In the notice, 
HUD advised that it would publish in the Federal Register a list of 
mortgagees that have had their Approval Agreements terminated. HUD 
Handbook 4000.1 section V.E.3.a.iii outlines current procedures for 
terminating Underwriting Authority of Direct Endorsement mortgagees.
    Termination of Direct Endorsement Approval: HUD approval of a DE 
mortgagee authorizes the mortgagee to underwrite single family mortgage 
loans and submit them to FHA for insurance endorsement. The approval 
may be terminated on the basis of poor performance of FHA-insured 
mortgage loans underwritten by the mortgagee. The termination of a 
mortgagee's DE Approval is separate and apart from any action taken by 
HUD's Mortgagee Review Board under HUD regulations at 24 CFR part 25.
    Cause: HUD regulations permit HUD to terminate the DE Approval of 
any mortgagee having a default and claim rate for loans endorsed within 
the preceding 24 months that exceeds 200 percent of the default and 
claim rate within the geographic area served by a HUD field office, and 
that exceeds the national default and claim rate.
    Effect: Termination of DE Approval precludes the mortgagee from 
underwriting FHA-insured single-family mortgages within the HUD field 
office jurisdiction(s) listed in this notice. Mortgagees authorized to 
hold or service FHA-insured mortgages may continue to do so.
    Loans that closed or were approved before the termination became 
effective may be submitted for insurance endorsement. Approved loans 
are those already underwritten and approved by a DE underwriter and 
cases covered by a firm commitment issued by HUD. Cases at earlier 
stages of processing cannot be submitted for insurance by the 
terminated mortgagee; however, the cases may be transferred for 
completion of processing and underwriting to another mortgagee with DE 
Approval in that geographic area. Mortgagees must continue to pay 
existing insurance premiums and meet all other obligations associated 
with insured mortgages.
    A terminated mortgagee may apply for reinstatement if their DE 
Approval in the affected area or areas has been terminated for at least 
six months and the mortgagee continues to be an approved mortgagee 
meeting the requirements of 24 CFR 202.5, 202.6, 202.7, 202.10 and 
202.12. The mortgagee's application for reinstatement must be in a 
format prescribed by the Secretary and signed by the mortgagee. In 
addition, the application must be accompanied by an independent 
analysis of the terminated office's operations as well as its mortgage 
production, specifically including the FHA-insured mortgages cited in 
its termination notice. This independent analysis shall identify the 
underlying cause for the mortgagee's high default and claim rate. The 
analysis must be prepared by an independent Certified Public Accountant 
(CPA) qualified to perform audits under Government Auditing Standards 
as provided by the Government Accountability Office. The mortgagee must 
also submit a written corrective action plan to address each of the 
issues identified in the CPA's report, along with evidence that the 
plan has been implemented. The application for reinstatement must be 
submitted through the Lender Electronic Assessment Portal (LEAP). The 
application must be accompanied by the CPA's report and the corrective 
action plan.
    Action: The following mortgagees have had their DE Approval 
terminated by HUD:

----------------------------------------------------------------------------------------------------------------
                                 Mortgagee home office      HUD office       Termination
        Mortgagee name                  address            jurisdiction    effective date   Homeownership center
----------------------------------------------------------------------------------------------------------------
CityWorth Mortgage LLC........  11781 Lee Jackson       Atlanta..........         12/5/19  Philadelphia.
                                 Memorial Highway,
                                 Fairfax, VA 22033.
CityWorth Mortgage LLC........  11781 Lee Jackson       Greensboro.......         12/5/19  Philadelphia.
                                 Memorial Highway,
                                 Fairfax, VA 22033.
CityWorth Mortgage LLC........  11781 Lee Jackson       Pittsburgh.......         12/5/19  Philadelphia.
                                 Memorial Highway,
                                 Fairfax, VA 22033.

[[Page 1821]]

 
CityWorth Mortgage LLC........  11781 Lee Jackson       Washington.......         12/5/19  Philadelphia.
                                 Memorial Highway,
                                 Fairfax, VA 22033.
The Home Lending Group LLC....  215 Katherine Drive     Jackson..........         12/5/19  Atlanta.
                                 Flowood, MS 39232.
----------------------------------------------------------------------------------------------------------------


    Dated: January 6, 2020.
John L. Garvin,
General Deputy Assistant Secretary for Housing.
[FR Doc. 2020-00321 Filed 1-10-20; 8:45 am]
 BILLING CODE 4210-67-P