Mortgagee Review Board: Administrative Actions, 22168-22174 [2024-06735]
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Federal Register / Vol. 89, No. 62 / Friday, March 29, 2024 / Notices
disclosure in writing within 10 days of
the date of the oral disclosure. A written
prior disclosure must be addressed to
the Commissioner of Customs, have
conspicuously printed on the face of the
envelope the words ‘‘prior disclosure,’’
and be presented to a Customs officer at
the Customs port of entry or a Center of
the disclosed violation.
Type of Information Collection: Prior
Disclosure.
Estimated Number of Respondents:
762.
Estimated Number of Annual
Responses per Respondent: 1.
Estimated Number of Total Annual
Responses: 762.
Estimated Time per Response: 3
hours.
Estimated Total Annual Burden
Hours: 2,286.
description of and the cause for
administrative action against a[n FHAapproved] 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 the
beginning of fiscal year 2023, October 1,
2022, through September 30, 2023,
where settlement agreements have been
reached, civil money penalties were
imposed, or FHA participation was
terminated as of December 9, 2023. The
notice also includes actions from prior
fiscal years which have not previously
been published.
Dated: March 26, 2024.
Emily K. Rick,
Branch Chief, Trade and Commercial
Regulations Branch, U.S. Customs and Border
Protection.
1. Academy Mortgage Corporation,
Draper, UT
[FR Doc. 2024–06699 Filed 3–28–24; 8:45 am]
BILLING CODE 9111–14–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–6455–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 the
National Housing Act, this notice
advises of the cause and description of
administrative actions taken by HUD’s
Mortgagee Review Board against FHAapproved mortgagees in fiscal year 2023.
FOR FURTHER INFORMATION CONTACT:
Nancy A. Murray, Secretary to the
Mortgagee Review Board, 451 Seventh
Street SW, Room B–133, Washington,
DC 20410–8000; telephone (202) 402–
2701 (this is not a toll-free number).
HUD welcomes and is prepared to
receive calls from individuals who are
deaf or hard of hearing, as well as
individuals with speech or
communication disabilities. To learn
more about how to make an accessible
telephone call, please visit https://
www.fcc.gov/consumers/guides/
telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION: Section
202(c)(5) of the National Housing Act
(12 U.S.C. 1708(c)(5)) requires that HUD
‘‘publish in the Federal Register a
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SUMMARY:
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I. Civil Money Penalties, Withdrawals
of FHA Approval, Suspensions,
Probations, and Reprimands
Action: On November 21, 2022, the
Board voted to accept a False Claims
Act settlement agreement between the
United States and Academy Mortgage
Corporation (‘‘Academy’’). The
settlement agreement required Academy
to make an administrative payment of
$23,750,000. Pursuant to the settlement
agreement, the Board provided a release
of administrative liability under 24 CFR
parts 25 and 30 for FHA loans covered
by the settlement agreement. The
settlement does not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Academy caused
the submission of false claims to FHA’s
Mutual Mortgage Insurance Fund
through systemic violations of FHA
underwriting guidelines and quality
control requirements for loans
underwritten between January 1, 2008
and April 27, 2017.
2. American Financing Corp, Aurora,
CO [Docket No. 21–2233–MR]
Action: On November 21, 2022, the
Board voted to enter into a settlement
agreement with American Financing
Corp. (‘‘American Financing’’) that
included a civil money penalty of
$166,072. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
American Financing (a) failed to
implement a Quality Control (‘‘QC’’)
plan; (b) failed to ensure that its QC staff
performed accurate loan sample risk
assessments; (c) failed to comply with
FHA’s self-reporting requirements
pertaining to two FHA-insured loans;
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and (d) failed to timely notify FHA of a
sanction in its fiscal year 2022.
3. AmNet ESOP Corporation, Chula
Vista, CA [Docket No. 23–3002–MR]
Action: On August 24, 2023, the
Board voted to withdraw AmNet ESOP
Corporation (‘‘AmNet’’) for a period of
one year.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: AmNet
(a) failed to maintain the minimum
required adjusted net worth in its fiscal
year 2021 and 2022; (b) failed to timely
notify FHA its adjusted net worth
deficiency in its fiscal year 2021; and (c)
failed to maintain the minimum
required adjusted net worth in its fiscal
year 2022.
4. AmRes Corporation, Trevose, PA
[Docket No. 23–3020–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with AmRes Corporation
(‘‘AmRes’’) that included a civil money
penalty of $5,000. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: AmRes failed to
timely notify FHA of a sanction in its
fiscal year 2022.
5. Bay Valley Mortgage Group, Garden
Grove, CA [Docket No. 23–3023–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Bay-Valley Mortgage
Group (‘‘Bay-Valley’’) that included a
civil money penalty of $11,011. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Bay-Valley failed
to timely notify FHA of a sanction in its
fiscal year 2022.
6. Beeline Loans, Inc., Providence, RI
[Docket No. 23–3016–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Beeline Loans, Inc.
(‘‘Beeline’’) that included a civil money
penalty of $5,000. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Beeline failed to
maintain the required minimum liquid
assets in its fiscal year 2021.
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7. Community Mortgage LLC,
Independence, MO [Docket No. 23–
3022–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Community Mortgage
LLC (‘‘Community Mortgage’’) that
included a civil money penalty of
$15,366. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Community Mortgage (a) failed to timely
notify FHA of a sanction in its fiscal
year 2021; and (b) submitted a false
certification to FHA concerning its fiscal
year 2021.
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8. Crossfire Financial Network, Miami,
FL [Docket No. 22–2052–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Crossfire Financial
Network (‘‘Crossfire Financial’’) that
included a civil money penalty of
$18,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Crossfire Financial (a) failed to maintain
the minimum required adjusted net
worth in its fiscal years 2021 and 2022;
and (b) failed to timely notify FHA of its
adjusted net worth deficiency in its
fiscal year 2021.
9. Efinity Financial Inc., Bedford, TX
[Docket No. 22–2017–MR]
Action: On November 21, 2022, the
Board voted to enter into a settlement
agreement with Efinity Financial Inc.
(‘‘Efinity’’) that included a civil money
penalty of $20,000. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Efinity
(a) failed to timely notify FHA of an
operating loss exceeding 20 percent of
the lender’s net worth in its fiscal year
2021; (b) failed to file quarterly financial
statements following its operating loss
in excess of 20 percent of its net worth
in its fiscal year 2021; (c) failed to
maintain the minimum required
adjusted net worth in its fiscal year
2022; and (d) failed to timely notify
FHA of a minimum adjusted net worth
deficiency in its fiscal year 2022.
10. FFC Mortgage Corp., Irvine, CA
[Docket No. 22–2064–MRT]
Action: On November 21, 2022, the
Board voted to enter into a settlement
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agreement with FFC Mortgage Corp.
(‘‘FFC’’) that included a civil money
penalty of $15,000. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: FFC (a)
failed to comply with the annual
recertification requirements following
its fiscal year 2021; (b) failed to timely
notify FHA of an operating loss
exceeding 20 percent of its net worth in
its fiscal year 2021; and (c) failed to file
quarterly financial statements following
its operating loss in excess of 20 percent
of its net worth in its fiscal year 2021.
11. First Home Mortgage Corp.,
Baltimore, MD [Docket No. 22–2035–
MR]
Action: On November 21, 2022, the
Board voted to enter into a settlement
agreement with First Home Mortgage
Corp. (‘‘First Home’’) that included a
civil money penalty of $15,245. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: First
Home (a) failed to timely notify FHA of
a state sanction in its fiscal year 2020;
and (b) submitted a false certification to
FHA concerning its fiscal year 2020.
12. Greystone Funding Company,
Atlanta, GA [Docket No. 23–3037–MR]
Action: On June 21, 2023, the Board
voted to enter into a settlement
agreement with Greystone Funding
Company (‘‘Greystone’’) that included a
civil money penalty of $1,000,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Between 2017 and 2019 Greystone
submitted 21 applications for FHAinsured loans for skilled nursing
facilities that included 65 false
certifications made by Greystone and
the borrower entities concerning
borrower entity litigation.
13. Hometown Equity Mortgage LLC,
Lake Forest, CA [Docket No. 22–2072–
MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Hometown Equity
Mortgage LLC (‘‘Hometown Equity’’)
that included a civil money penalty of
$5,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged violation
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of FHA requirements: Hometown Equity
failed to timely notify FHA of a sanction
in its fiscal year 2022.
14. Hudson Realty Finance LLC, New
York, NY [Docket No. 23–3007–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Hudson Realty Finance
LLC (‘‘Hudson’’) that included a civil
money penalty of $24,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Hudson
Realty (a) failed to timely notify FHA of
operating losses in excess of 20 percent
of its net worth in its fiscal year 2021;
and (b) failed to timely submit quarterly
financial statements as required when
operating losses exceeded 20% of net
worth in fiscal year 2021.
15. InstaMortgage Inc. d/b/a Arcus VA
Mortgage, San Jose, CA [Docket No. 23–
3030–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with InstaMortgage Inc. d/b/
a Arcus VA Mortgage (‘‘InstaMortgage’’)
that included a civil money penalty of
$18,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
InstaMortgage (a) failed to timely notify
FHA of a sanction in its fiscal year end
July 31, 2022; (b) failed to timely notify
FHA of an operating loss exceeding 20
percent of its net worth in its fiscal year
end July 31, 2022; and (c) failed to file
quarterly financial statements following
its operating loss in excess of 20 percent
of its net worth in its fiscal year end July
31, 2022.
16. Intercontinental Capital Group, Inc.,
Melville, NY [Docket No. 22–2071–MR]
Action: On February 2, 2023, the
Board voted to enter into a settlement
agreement with Intercontinental Capital
Group, Inc., (‘‘ICG’’) that included a
civil money penalty of $15,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: ICG (a)
failed to file quarterly financial
statements following its operating loss
in excess of 20 percent of its net worth
in its fiscal year 2021; and (b) failed to
timely notify FHA that it incurred an
operating loss exceeding 20 percent of
its net worth in its fiscal year 2022.
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17. International City Mortgage, Santa
Ana, CA [Docket No. 23–3038–MR]
Action: On August 24, 2023, the
Board voted to enter into a settlement
agreement with International City
Mortgage (‘‘International City’’) that
included a civil money penalty of
$17,864. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
International City (a) failed to timely
notify FHA of a state sanction in its
fiscal year 2021; and (b) submitted a
false certification to FHA concerning its
fiscal year 2021.
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18. James B. Nutter & Company, Kansas
City, MO [Docket No. 19–1928–MR]
Action: On November 21, 2022, the
Board voted to enter into a settlement
agreement with James B. Nutter &
Company (‘‘Nutter’’) that included a
civil money penalty of $400,000 and
reimbursement to FHA of mortgage
insurance payments equal to $175,000
related to eight FHA-insured loans. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Nutter
(a) failed to timely remit periodic
mortgage insurance premiums; and (b)
made numerous servicing violations
including improper applications of
FHA’s loss mitigation waterfall.
19. K & B Capital Corporation, Boca
Raton, FL [Docket No. 22–2075–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with K & B Capital
Corporation (‘‘K & B’’) that included a
civil money penalty of $20,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: K & B
(a) failed to maintain the minimum
required adjusted net worth in its fiscal
year 2021; (b) failed to timely notify
FHA of its adjusted net worth deficiency
in its fiscal year 2021; (c) failed to
timely notify FHA of operating losses
exceeding 20 percent of its net worth in
its fiscal year 2022; and (d) failed to file
quarterly financial statements following
its operating loss in excess of 20 percent
of its net worth in its fiscal year 2022.
20. Lenox Financial Mortgage
Corporation, Santa Ana, CA [Docket No.
23–3019–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
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agreement with Lenox Financial
Mortgage Corporation (‘‘Lenox’’) that
included a civil money penalty of
$5,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Lenox failed to
timely notify FHA of a sanction in its
fiscal year 2022.
21. Loan Simple, Inc., Englewood, CO
[Docket No. 22–2081–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Loan Simple, Inc.
(‘‘Loan Simple’’) that included a civil
money penalty of $15,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Loan
Simple (a) failed to timely notify FHA
of operating losses exceeding 20 percent
of its net worth in fiscal years 2021 and
2022; and (b) failed to file quarterly
financial statements following its
operating losses in excess of 20 percent
of its net worth in fiscal years 2021 and
2022.
22. Meadowbrook Financial Mortgage
Bankers Corp., Westbury, NY [Docket
No. 23–3035–MR]
Action: On June 21, 2023, the Board
voted to enter into a settlement
agreement with Meadowbrook Financial
Mortgage Bankers Corp.
(‘‘Meadowbrook’’) that included a civil
money penalty of $6,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Meadowbrook
failed to timely notify FHA of a sanction
in its fiscal year 2022.
23. MidWest Mortgage Association
Corporation, Colorado Springs, CO
[Docket No 23–3004–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Midwest Mortgage
Association Corporation (‘‘Midwest’’)
that included a civil money penalty of
$18,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Midwest (a) failed to maintain the
minimum required adjusted net worth
during its fiscal years 2021 and 2022;
and (b) failed to timely notify FHA of its
failure to maintain the minimum
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required adjusted net worth during its
fiscal year 2021.
24. Mortgage Network Inc., Danvers, MA
[Docket No. 22–2080–MR]
Action: On February 2, 2023, the
Board voted to enter into a settlement
agreement with Mortgage Network Inc.
(‘‘Mortgage Network’’) that included a
civil money penalty of $5,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Mortgage Network
failed to timely notify FHA of a sanction
in its fiscal year 2022.
25. Mortgage300 Corporation, Palm
Beach Gardens, FL [Docket No. 23–
3008–MR]
Action: On August 24, 2023, the
Board voted to enter into a settlement
agreement with Mortgage300
Corporation (‘‘Mortgage300’’) that
included a civil money penalty of
$6,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Mortgage300 failed to timely notify FHA
of a sanction in its fiscal year 2022.
26. Movement Mortgage, LLC, Indian
Land, SC
Action: On November 21, 2022, the
Board voted to accept a False Claims
Act settlement agreement between the
United States and Movement Mortgage,
LLC (‘‘Movement Mortgage’’). The
settlement required Movement Mortgage
to pay FHA $5,770,820 in restitution
and to enter into life-of-loan
indemnification agreements for 9 FHAinsured loans, resulting in an additional
payment to FHA of $464,000. Pursuant
to the settlement agreement, the Board
provided a release of administrative
liability under 24 CFR parts 25 and 30
for FHA loans covered by the False
Claims Act settlement.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Between July 2008 and July 2018,
Movement Mortgage knowingly violated
FHA requirements while underwriting
FHA-insured loans, which resulted in
false claims for mortgage insurance
benefits.
27. Nationwide Home Loans, Inc.,
Englewood, CO [Docket No. 22–2073–
MR]
Action: On February 2, 2023, the
Board voted to withdraw the FHAapproval of Nationwide Home Loans,
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Inc. (‘‘Nationwide’’) for a period of one
year.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Nationwide (a) failed to maintain the
minimum required adjusted net worth
in its fiscal year 2021; and (b) failed to
timely notify FHA of an adjusted net
worth deficiency in its fiscal year 2021.
28. Network Capital Funding
Corporation, Irvine, CA [Docket No. 22–
2065–MR]
Action: On February 2, 2023, the
Board voted to enter into a settlement
agreement with Network Capital
Funding Corporation (‘‘Network
Capital’’) that included a civil money
penalty of $15,366. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Network Capital (a) failed to timely
notify FHA of a state sanction in its
fiscal year 2021; and (b) submitted a
false certification to FHA concerning its
fiscal year 2021.
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29. NextMortgage, LLC, San Ramon, CA
[Docket No. 22–2068–MR]
Action: On February 2, 2023, the
Board voted to enter into a settlement
agreement with NextMortgage, LLC
(‘‘NextMortgage’’) that included a civil
money penalty of $15,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
NextMortgage (a) failed to maintain the
minimum required adjusted net worth
in its fiscal years 2021 and 2022; and (b)
failed to timely notify FHA of its
adjusted net worth deficiencies in its
fiscal years 2021 and 2022.
30. NMSI, Inc., Los Angeles, CA [Docket
No. 22–2082–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with NMSI, Inc. (‘‘NMSI’’)
that included a civil money penalty of
$5,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: NMSI failed to
timely notify FHA of a sanction in its
fiscal year 2022.
31. On Q Financial, Inc., Tempe, AZ
[Docket No. 23–3017–MR]
Action: On February 2, 2023, the
Board voted to enter into a settlement
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agreement with On Q Financial, Inc.
(‘‘On Q’’) that included a civil money
penalty of $15,366. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: On Q
(a) failed to timely notify FHA of a state
sanction in its fiscal year 2021; and (b)
submitted a false certification to FHA
concerning its fiscal year 2021.
32. Point Mortgage Corporation, Chula
Vista, CA [Docket No. 23–3034–MR]
Action: On June 21, 2023, the Board
voted to enter into a settlement
agreement with Point Mortgage
Corporation (‘‘Point Mortgage’’) that
included a civil money penalty of
$12,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Point
Mortgage (a) failed to timely notify FHA
of operating losses exceeding 20 percent
of its net worth in its fiscal year 2022,
and (b) failed to file quarterly financial
statements following its operating loss
in excess of 20 percent of its net worth
in fiscal year 2022.
33. PR Electric Power Authority
Employees’ Retirement, Santurce, PR
[Docket Nos.22–2023–MRT and 22–
2062–MR]
Action: On April 18, 2023, the Board
voted to withdraw the FHA approval of
PR Electric Power Authority Employees’
Retirement (‘‘PR Electric’’) for a period
of one (1) year.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: PR Electric (a)
failed to comply with the annual
recertification requirements for fiscal
year end June 30, 2021; and (b) failed to
timely notify FHA of a change of a
corporate officer during the fiscal year
end June 30, 2021.
34. Precision Mortgage, LLC, Rockville,
MD [Docket No. 22–2076–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Precision Mortgage, LLC
(‘‘Precision Mortgage’’) that included a
civil money penalty of $6,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Precision
Mortgage failed to maintain the
minimum required adjusted net worth
in its fiscal year 2021.
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35. Quick Mortgage Corp.,
Bloomingdale, IL [Docket No. 23–3006–
MR]
Action: On April 18, 2023, the Board
voted to withdraw the FHA approval of
Quick Mortgage Corp. for a period of
one year.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Quick Mortgage
Corp. failed to maintain the minimum
required adjusted net worth in its fiscal
year end April 30, 2022
36. Reliant Mortgage, LLC, Baton Rouge,
LA [Docket No. 22–2029–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Reliant Mortgage, LLC
(‘‘Reliant’’) that included a civil money
penalty of $15,366. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Reliant
(a) failed to timely notify FHA of a state
sanction in its fiscal year end August 31,
2021; and (b) submitted a false
certification to FHA concerning its fiscal
year end August 31, 2021.
37. ReNew Lending Inc., Reno, NV
[Docket No. 23–3026–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Renew Lending Inc.
(‘‘ReNew’’) that included a civil money
penalty of $6,000. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: ReNew failed to
maintain the minimum required
adjusted net worth in its fiscal year
2022.
38. ResMac Inc., Delray Beach, FL
[Docket No. 22–2020–MR]
Action: On February 2, 2023, the
Board voted to enter into a settlement
agreement with ResMac, Inc.
(‘‘ResMac’’) that included a civil money
penalty of $71,250 and a life-of-loan
indemnification agreement for one FHAinsured loan. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: ResMac (a) failed
to comply with requests made by FHA
to produce information and
documentation; (b) failed to obtain and
retain the required documents to
properly verify and reverify the
borrower’s employment and income;
and (c) failed to timely notify FHA of
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five state sanctions in its fiscal years
2019, 2021, and 2022.
39. Rocket Mortgage, LLC, Detroit, MI
[Docket No. 23–3005–MR]
Action: On June 21, 2023, the Board
voted to enter into a settlement
agreement with Rocket Mortgage, LLC
(‘‘Rocket’’) that included a civil money
penalty of $17,864. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Rocket
(a) failed to timely notify FHA that it
was sanctioned in its fiscal year 2021;
and (b) submitted a false certification to
FHA concerning its fiscal year 2021.
40. Ross Mortgage Company Inc.,
Westborough, MA [Docket No. 23–3039–
MR]
Action: On June 21, 2023, the Board
voted to enter into a settlement
agreement with Ross Mortgage Company
Inc. (‘‘Ross’’) that included a civil
money penalty of $6,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Ross failed to
timely notify FHA of a sanction in its
fiscal year end September 30, 2023.
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41. Secure One Capital Corporation,
Costa Mesa, CA [Docket No. 22–2070–
MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Secure One Capital
Corporation (‘‘Secure One’’) that
included a civil money penalty of
$10,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Secure
One (a) failed to timely notify FHA of
an operating loss that exceeded 20
percent of its net worth in its fiscal year
2021; and (b) failed to file quarterly
financial statements following its
operating loss in excess of 20 percent of
its net worth in its fiscal year 2021.
42. Siwell, Inc. d/b/a Capital Mortgage
Services of Texas, Lubbock, TX [Docket
No. 20–2020–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Siwell, Inc. d/b/a
Capital Mortgage Services of Texas
(‘‘Siwell’’) that included a civil money
penalty of $88,083 and probation. 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 alleged
violations of FHA requirements: Siwell
(a) failed to timely notify FHA of five
state sanctions in its fiscal years 2016,
2017, 2018,and 2020; (b) submitted a
false certification to FHA concerning its
fiscal years 2016, 2017, and 2018; (c)
approved a Home Affordable
Modification Program (HAMP)
modification and partial claim for a loan
that was ineligible for the loss
mitigation it received; and (d) failed to
possess and implement a compliant QC
plan.
43. SN Servicing Corporation, Baton
Rouge, LA [Docket No. 22–2040–MR]
Action: On November 21, 2022, the
Board voted to enter into a settlement
agreement with SN Servicing
Corporation (‘‘SN Servicing’’) that
included a civil money penalty of
$20,732. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: SN
Servicing (a) failed to maintain the
minimum required adjusted net worth
in its fiscal year 2021; and (b) failed to
timely notify FHA of its adjusted net
worth deficiency in its fiscal year 2021.
44. Southwest Funding, LP, Dallas, TX
[Docket No. 22–2078–MR]
Action: On June 21, 2023, the Board
voted to enter into a settlement
agreement with Southwest Funding, LP
(‘‘Southwest Funding’’) that included a
civil money penalty of $160,956. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Southwest Funding (a) failed to adopt
and maintain a valid QC Plan in
compliance with FHA requirements; (b)
failed to implement a QC plan in
compliance with FHA staffing
requirements; (c) failed to comply with
FHA’s self-reporting requirements to
report material findings in FHA loans
that were not mitigated; (d) failed to
complete timely QC reviews of its Early
Payment Default Loans in compliance
with FHA requirements; and (e) failed to
timely update its business information
in Lender Electronic Assessment Portal
(‘‘LEAP’’) in compliance with FHA
requirements.
45. St. Fin Corp. d/b/a Star Financial,
Laguna Hills, CA [Docket No. 23–2002–
MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
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agreement with St. Fin Corp. d/b/a Star
Financial (‘‘Star Financial’’) that
included a civil money penalty of
$6,000. The settlement did not
constitute an admission of liability or
fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Star Financial
failed to timely notify FHA of a sanction
in its fiscal year 2021.
46. TAM Lending Center Inc., Audubon,
NJ [Docket No. 23–3001–MR]
Action: On February 2, 2023, the
Board voted to enter into a settlement
agreement with TAM Lending Center
Inc. (‘‘TAM Lending’’) that included a
civil money penalty of $5,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: TAM Lending
failed to timely notify FHA of a sanction
in its fiscal year 2022.
47. Titan Mutual Lending Inc., Irvine,
CA. [Docket No. 22–2079–MR]
Action: On February 2, 2023, the
Board voted to enter into a settlement
agreement with Titan Mutual Lending
Inc. (‘‘Titan’’) that included a civil
money penalty of $5,000. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Titan failed to
timely notify FHA of a sanction in its
fiscal year 2022.
48. Tomo Mortgage, LLC, Austin, TX
[Docket No. 23–3017–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Tomo Mortgage LLC
(‘‘Tomo’’) that included a civil money
penalty of $15,000. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Tomo
(a) failed to timely notify FHA of
operating losses exceeding twenty
percent of its net worth in its fiscal year
2022, and (b) failed to file quarterly
financial statements following its
operating loss in excess of 20 percent of
its net worth in its fiscal year 2022.
49. Umpqua Bank, Tigard, OR [Docket
No. 22–2067–MR]
Action: On April 18, 2023, the Board
voted to enter into a settlement
agreement with Umpqua Bank
(‘‘Umpqua’’) that included a civil money
penalty of $5,000. The settlement did
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not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Umpqua failed to
timely notify FHA of a sanction in its
fiscal year 2021.
50. Van Dyk Mortgage Corporation,
Grand Rapids, MI [Docket No. 22–2074–
MR]
Action: On February 2, 2023, the
Board voted to enter into a settlement
agreement with Van Dyk Mortgage
(‘‘Van Dyk’’) that included a civil money
penalty of $88,088. The settlement did
not constitute an admission of liability
or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: Van
Dyk (a) failed to timely notify FHA of
a sanction in its fiscal year 2022; and (b)
failed to check on a semiannual basis
that its officers, directors, managers, and
supervisors who participate in FHA
programs were eligible to participate in
its fiscal year 2022.
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51. V.I.P. Mortgage, Inc., Scottsdale, AZ
[Docket No. 22–2025–MR]
Action: On November 21, 2022, the
Board voted to enter into a settlement
agreement with V.I.P. Mortgage, Inc.
(‘‘V.I.P.’’) that included a civil money
penalty of $100,490, a five-year
indemnification agreement for each of
two FHA-insured loans, and a
requirement to provide FHA with the
lender’s quality control reports for a
period of six months.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements: V.I.P.
(a) failed to ensure its senior
management timely reviewed postclosing quality control findings reports
and timely respond to each instance of
fraud, material representation, or other
material findings; (b) failed to report to
FHA instances of fraud, material
misrepresentation, and unmitigated
material findings relating to FHAinsured loans; and (c) violated FHA’s
branch registration requirements by
conducting FHA business at four
locations that V.I.P. did not properly
register as FHA branches and for which
V.I.P. did not pay the registration fee.
52. Wendover Financial Services
Corporation, Greensboro, NC [Docket
No. 22–2015–MR]
Action: On June 16, 2022, the Board
voted to withdraw the FHA approval of
Wendover Financial Services
Corporation (‘‘Wendover’’) for a period
of one year. Wendover appealed the
withdrawal but, as part of a settlement,
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agreed to dismiss its appeal. The
settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action
based on the following alleged
violations of FHA requirements:
Wendover (a) did not have as its
principal activity the lending or
investment of funds in real estate
mortgages or a directly related field in
its fiscal year end March 31, 2021; and
(b) failed to timely notify FHA of a
change in its principal activity in its
fiscal year end March 31, 2021.
53. WesBanco Bank, Inc., Wheeling, WV
[Docket No 22–2027–MR]
Action: On November 21, 2022, the
Board voted to enter into a settlement
agreement with WesBanco Bank, Inc.
(‘‘WesBanco’’) that included a civil
money penalty of $35,732 and a fiveyear indemnification agreement for 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 alleged
violations of FHA requirements:
WesBanco (a) failed to verify a
borrower’s liquid assets; (b) failed to
verify the borrower’s effective income;
(c) failed to downgrade and underwrite
a loan manually with a case number
assignment date within three years of
the date of transfer of title through a PreForeclosure Sale; and (d) failed to
document properly the life-of-loan flood
certification forms for two FHA-insured
loans for properties in Special Flood
Hazard Areas.
54. Western Express Lending d/b/a
WeLending, Lake Forest, CA [Docket No.
22–2060–MR]
Action: On February 2, 2023, the
Board voted to withdraw the FHAapproval of Western Express Lending d/
b/a WeLending (‘‘Western Express’’) for
a period of one year.
Cause: The Board took this action
based on the following alleged violation
of FHA requirements: Western Express
failed to file quarterly financial
statements following its operating loss
in excess of 20 percent of its net worth
in its fiscal year 2021.
II. Lenders That Failed To Timely
Obtain the Required Unique Entity
Identifier
Each lender in the following list
violated FHA requirements by failing to
timely submit an Information Update
through the LEAP and establish that it
had a Unique Entity Identifier (‘‘UEI’’)
assigned to it through the System of
Award Management website in
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22173
accordance with the OMB Directive and
applicable FHA handbook.
The Federal Funding Accountability
and Transparency Act of 2006, as
amended by the Digital Accountability
and Transparency Act of 2014, required
federal agencies to report data about
federal awards, which are tracked using
the UEI. The definition of award types
was expanded with the release of 2 CFR
part 25 to include loans, insurance, and
loan guarantees, which would include
all FHA-approved institutions. All
entities currently conducting or seeking
to do business with the federal
government must have a UEI registered
in GSA’s System of Award Management.
On August 23, 2022, FHA published
Mortgagee Letter 2022–14 (ML 22–14)
that provided information on a new
eligibility requirement for all FHA
approved lenders and stipulated the
compliance deadline of December 31,
2022. On December 19, 2022, and
January 15, 2023, instructive reminders
were sent via email to those institutions
that had not input a UEI in their
institution profile in the Lender
Electronic Assessment Portal.
On April 19, 2023, Notices of
Deficiency were sent via email to the
lenders that failed to respond to the
reminders by entering the UEI in the
LEAP institution profile.
Finally, beginning on May 16, 2023,
lenders that had not provided their
respective UEI were issued Notices of
Violation for failure to comply with
FHA’s eligibility requirements.
The following five lenders are in this
category and each paid a civil money
penalty of $3,000.00.
1. Area Federal Credit Union,
Aberdeen, SD [Docket No. 23–3213–
MR];
2. ClearPath Lending, Irvine, CA
[Docket No. 23–3133–MR];
3. Lending Hand Mortgage, LLC,
Madison, TN [Docket No. 23–3237–MR];
4. Mortgage One Solutions Inc.,
Vienna, VA [Docket No. 23–3261–MR];
and
5. Trust Mortgage Lending Corp.,
Doral, FL [Docket No. 23–3263–MR]
III. Lenders That Failed To Timely
Meet Requirements for Annual
Recertification of 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 actions based
upon allegations that the listed lenders
failed to comply with FHA’s annual
recertification requirements in a timely
manner.
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The following lenders paid civil
money penalties of $11,864.00:
1. A Plus Mortgage Services, Inc.,
Muskego, WI [Docket No. 23–3349–
MRT];
2. City National Bank of Florida,
Miami, FL [Docket No. 23–3010–MRT];
3. Eagle Mortgage & Funding Inc.,
Memphis, TN [Docket No. 23–3356–
MRT];
4. Essential Mortgage Partners, LLC,
Kenner, LA [Docket No. 23–3369–MRT];
5. GreenState Credit Union, North
Liberty, IA [Docket No. 23–3374–MRT];
6. ResMac, Inc., Delray Beach, FL
[Docket No. 23–3034–MRT]; and
7. Statewide Funding Inc., Ontario,
CA [Docket No. 23–3370–MRT]
The following lenders paid a civil
money penalty of $6,000.00:
1. American Heritage Lending, LLC,
Irvine, CA [Docket No. 23–3372–MRT];
2. Bank of Idaho, Pocatello, ID
[Docket No. 23–3068–MRT];
3. Mid Valley Financial Services,
Fresno, CA [Docket No. 23–3102–MRT];
and
4. Southwest Bank, Odessa, TX
[Docket No. 23–3092–MR]
The following lenders paid civil
money penalties of $5,000.00:
1. Ameritrust Mortgage Corp, Tustin,
CA [Docket No. 22–2045–MRT];
2. Community First Bank, Kennewick,
WA [Docket No. 23–3063–MRT]; and
3. Statebridge Company LLC,
Greenwood Village, CO [Docket No. 22–
2050–MRT]
IV. 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. Accelerate Mortgage, LLC, Newark,
DE [Docket No. 23–3040 MRT];
2. American Bank of Missouri, Wright
City, MO [Docket No. 23–3087–MR];
3. Graystone Funding Company Salt
Lake City, UT
4. Interstate Bank, Perryton, TX
5. James B Nutter and Company,
Kansas City, MO [Docket No. 23–3088–
MR];
6. Loan Cabin, Inc., Lombard, IL
[Docket No. 23–3012–MRT];
7. Mortgage Master Service
Corporation, Kent, WA [Docket No. 23–
3321–MR];
8. Republic First Bank d/b/a Republic
Bank, Philadelphia, PA [Docket No. 23–
3075–MR];
9. Rogue Credit Union, Medford, OR
[Docket No. 22–2066–MRT];
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Jkt 262001
10. Sprout Mortgage, LLC, Port Saint
Lucie, FL [Docket No. 23–3083–MR];
11. The Home Loan Expert, LLC, Saint
Louis, MO [Docket No. 23–3072–MR];
12. Tri-Emerald Financial Group Inc,
Aliso Viejo, CA [Docket No. 22–2077–
MRT];
13. US Employees OC Federal Credit
Union, Oklahoma City, OK [Docket No.
22–2047–MRT];
14. Valley Exchange Bank of Lennox,
Lennox, SD [Docket No. 23–3098–MR];
and
15. WestStar Credit Union, Las Vegas,
NV [Docket No. 23–3071–MR]
Julia R. Gordon,
Assistant Secretary for Housing—Federal
Housing Administration, Mortgagee Review
Board, Chairperson.
[FR Doc. 2024–06735 Filed 3–28–24; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
[Docket No. FWS–HQ–IA–2024–0048;
FXIA16710900000–245–FF09A30000]
Foreign Endangered Species; Receipt
of Permit Applications
AGENCY:
Fish and Wildlife Service,
Interior.
Notice of receipt of permit
applications; request for comments.
ACTION:
We, the U.S. Fish and
Wildlife Service, invite the public to
comment on applications to conduct
certain activities with foreign species
that are listed as endangered under the
Endangered Species Act (ESA). With
some exceptions, the ESA prohibits
activities with listed species unless
Federal authorization is issued that
allows such activities. The ESA also
requires that we invite public comment
before issuing permits for any activity
otherwise prohibited by the ESA with
respect to any endangered species.
DATES: We must receive comments by
April 29, 2024.
ADDRESSES:
Obtaining Documents: The
applications, application supporting
materials, and any comments and other
materials that we receive will be
available for public inspection at
https://www.regulations.gov in Docket
No. FWS–HQ–IA–2024–0048.
Submitting Comments: When
submitting comments, please specify the
name of the applicant and the permit
number at the beginning of your
comment. You may submit comments
by one of the following methods:
• Internet: https://
www.regulations.gov. Search for and
SUMMARY:
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
submit comments on Docket No. FWS–
HQ–IA–2024–0048.
• U.S. mail: Public Comments
Processing, Attn: Docket No. FWS–HQ–
IA–2024–0048; U.S. Fish and Wildlife
Service Headquarters, MS: PRB/3W;
5275 Leesburg Pike; Falls Church, VA
22041–3803.
For more information, see Public
Comment Procedures under
SUPPLEMENTARY INFORMATION.
FOR FURTHER INFORMATION CONTACT:
Brenda Tapia, by phone at 703–358–
2185 or via email at DMAFR@fws.gov.
Individuals in the United States who are
deaf, deafblind, hard of hearing, or have
a speech disability may dial 711 (TTY,
TDD, or TeleBraille) to access
telecommunications relay services.
Individuals outside the United States
should use the relay services offered
within their country to make
international calls to the point-ofcontact in the United States.
SUPPLEMENTARY INFORMATION:
I. Public Comment Procedures
A. How do I comment on submitted
applications?
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.
You may submit your comments and
materials by one of the methods in
ADDRESSES. We will not consider
comments sent by email or to an address
not in ADDRESSES. We will not consider
or include in our administrative record
comments we receive after the close of
the comment period (see DATES).
When submitting comments, please
specify the name of the applicant and
the permit number at the beginning of
your comment. Provide sufficient
information to allow us to authenticate
any scientific or commercial data you
include. The comments and
recommendations that will be most
useful and likely to influence agency
decisions are: (1) Those supported by
quantitative information or studies; and
(2) those that include citations to, and
analyses of, the applicable laws and
regulations.
B. May I review comments submitted by
others?
You may view and comment on
others’ public comments at https://
www.regulations.gov unless our
allowing so would violate the Privacy
Act (5 U.S.C. 552a) or Freedom of
Information Act (5 U.S.C. 552).
E:\FR\FM\29MRN1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 62 (Friday, March 29, 2024)]
[Notices]
[Pages 22168-22174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06735]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6455-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 the National Housing Act, this notice
advises of the cause and description of administrative actions taken by
HUD's Mortgagee Review Board against FHA-approved mortgagees in fiscal
year 2023.
FOR FURTHER INFORMATION CONTACT: Nancy A. Murray, Secretary to the
Mortgagee Review Board, 451 Seventh Street SW, Room B-133, Washington,
DC 20410-8000; telephone (202) 402-2701 (this is not a toll-free
number). HUD welcomes and is prepared to receive calls from individuals
who are deaf or hard of hearing, as well as individuals with speech or
communication disabilities. To learn more about how to make an
accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION: Section 202(c)(5) of the National Housing
Act (12 U.S.C. 1708(c)(5)) requires that HUD ``publish in the Federal
Register a description of and the cause for administrative action
against a[n FHA-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 the beginning of fiscal year 2023, October 1, 2022,
through September 30, 2023, where settlement agreements have been
reached, civil money penalties were imposed, or FHA participation was
terminated as of December 9, 2023. The notice also includes actions
from prior fiscal years which have not previously been published.
I. Civil Money Penalties, Withdrawals of FHA Approval, Suspensions,
Probations, and Reprimands
1. Academy Mortgage Corporation, Draper, UT
Action: On November 21, 2022, the Board voted to accept a False
Claims Act settlement agreement between the United States and Academy
Mortgage Corporation (``Academy''). The settlement agreement required
Academy to make an administrative payment of $23,750,000. Pursuant to
the settlement agreement, the Board provided a release of
administrative liability under 24 CFR parts 25 and 30 for FHA loans
covered by the settlement agreement. The settlement does not constitute
an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Academy caused the submission of false
claims to FHA's Mutual Mortgage Insurance Fund through systemic
violations of FHA underwriting guidelines and quality control
requirements for loans underwritten between January 1, 2008 and April
27, 2017.
2. American Financing Corp, Aurora, CO [Docket No. 21-2233-MR]
Action: On November 21, 2022, the Board voted to enter into a
settlement agreement with American Financing Corp. (``American
Financing'') that included a civil money penalty of $166,072. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: American Financing (a) failed to
implement a Quality Control (``QC'') plan; (b) failed to ensure that
its QC staff performed accurate loan sample risk assessments; (c)
failed to comply with FHA's self-reporting requirements pertaining to
two FHA-insured loans; and (d) failed to timely notify FHA of a
sanction in its fiscal year 2022.
3. AmNet ESOP Corporation, Chula Vista, CA [Docket No. 23-3002-MR]
Action: On August 24, 2023, the Board voted to withdraw AmNet ESOP
Corporation (``AmNet'') for a period of one year.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: AmNet (a) failed to maintain the
minimum required adjusted net worth in its fiscal year 2021 and 2022;
(b) failed to timely notify FHA its adjusted net worth deficiency in
its fiscal year 2021; and (c) failed to maintain the minimum required
adjusted net worth in its fiscal year 2022.
4. AmRes Corporation, Trevose, PA [Docket No. 23-3020-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with AmRes Corporation (``AmRes'') that included a
civil money penalty of $5,000. The settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: AmRes failed to timely notify FHA of a
sanction in its fiscal year 2022.
5. Bay Valley Mortgage Group, Garden Grove, CA [Docket No. 23-3023-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Bay-Valley Mortgage Group (``Bay-Valley'')
that included a civil money penalty of $11,011. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Bay-Valley failed to timely notify FHA
of a sanction in its fiscal year 2022.
6. Beeline Loans, Inc., Providence, RI [Docket No. 23-3016-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Beeline Loans, Inc. (``Beeline'') that
included a civil money penalty of $5,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Beeline failed to maintain the required
minimum liquid assets in its fiscal year 2021.
[[Page 22169]]
7. Community Mortgage LLC, Independence, MO [Docket No. 23-3022-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Community Mortgage LLC (``Community
Mortgage'') that included a civil money penalty of $15,366. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Community Mortgage (a) failed to timely
notify FHA of a sanction in its fiscal year 2021; and (b) submitted a
false certification to FHA concerning its fiscal year 2021.
8. Crossfire Financial Network, Miami, FL [Docket No. 22-2052-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Crossfire Financial Network (``Crossfire
Financial'') that included a civil money penalty of $18,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Crossfire Financial (a) failed to
maintain the minimum required adjusted net worth in its fiscal years
2021 and 2022; and (b) failed to timely notify FHA of its adjusted net
worth deficiency in its fiscal year 2021.
9. Efinity Financial Inc., Bedford, TX [Docket No. 22-2017-MR]
Action: On November 21, 2022, the Board voted to enter into a
settlement agreement with Efinity Financial Inc. (``Efinity'') that
included a civil money penalty of $20,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Efinity (a) failed to timely notify FHA
of an operating loss exceeding 20 percent of the lender's net worth in
its fiscal year 2021; (b) failed to file quarterly financial statements
following its operating loss in excess of 20 percent of its net worth
in its fiscal year 2021; (c) failed to maintain the minimum required
adjusted net worth in its fiscal year 2022; and (d) failed to timely
notify FHA of a minimum adjusted net worth deficiency in its fiscal
year 2022.
10. FFC Mortgage Corp., Irvine, CA [Docket No. 22-2064-MRT]
Action: On November 21, 2022, the Board voted to enter into a
settlement agreement with FFC Mortgage Corp. (``FFC'') that included a
civil money penalty of $15,000. The settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: FFC (a) failed to comply with the
annual recertification requirements following its fiscal year 2021; (b)
failed to timely notify FHA of an operating loss exceeding 20 percent
of its net worth in its fiscal year 2021; and (c) failed to file
quarterly financial statements following its operating loss in excess
of 20 percent of its net worth in its fiscal year 2021.
11. First Home Mortgage Corp., Baltimore, MD [Docket No. 22-2035-MR]
Action: On November 21, 2022, the Board voted to enter into a
settlement agreement with First Home Mortgage Corp. (``First Home'')
that included a civil money penalty of $15,245. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: First Home (a) failed to timely notify
FHA of a state sanction in its fiscal year 2020; and (b) submitted a
false certification to FHA concerning its fiscal year 2020.
12. Greystone Funding Company, Atlanta, GA [Docket No. 23-3037-MR]
Action: On June 21, 2023, the Board voted to enter into a
settlement agreement with Greystone Funding Company (``Greystone'')
that included a civil money penalty of $1,000,000. The settlement did
not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Between 2017 and 2019 Greystone
submitted 21 applications for FHA-insured loans for skilled nursing
facilities that included 65 false certifications made by Greystone and
the borrower entities concerning borrower entity litigation.
13. Hometown Equity Mortgage LLC, Lake Forest, CA [Docket No. 22-2072-
MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Hometown Equity Mortgage LLC (``Hometown
Equity'') that included a civil money penalty of $5,000. The settlement
did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Hometown Equity failed to timely notify
FHA of a sanction in its fiscal year 2022.
14. Hudson Realty Finance LLC, New York, NY [Docket No. 23-3007-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Hudson Realty Finance LLC (``Hudson'') that
included a civil money penalty of $24,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Hudson Realty (a) failed to timely
notify FHA of operating losses in excess of 20 percent of its net worth
in its fiscal year 2021; and (b) failed to timely submit quarterly
financial statements as required when operating losses exceeded 20% of
net worth in fiscal year 2021.
15. InstaMortgage Inc. d/b/a Arcus VA Mortgage, San Jose, CA [Docket
No. 23-3030-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with InstaMortgage Inc. d/b/a Arcus VA Mortgage
(``InstaMortgage'') that included a civil money penalty of $18,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: InstaMortgage (a) failed to timely
notify FHA of a sanction in its fiscal year end July 31, 2022; (b)
failed to timely notify FHA of an operating loss exceeding 20 percent
of its net worth in its fiscal year end July 31, 2022; and (c) failed
to file quarterly financial statements following its operating loss in
excess of 20 percent of its net worth in its fiscal year end July 31,
2022.
16. Intercontinental Capital Group, Inc., Melville, NY [Docket No. 22-
2071-MR]
Action: On February 2, 2023, the Board voted to enter into a
settlement agreement with Intercontinental Capital Group, Inc.,
(``ICG'') that included a civil money penalty of $15,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: ICG (a) failed to file quarterly
financial statements following its operating loss in excess of 20
percent of its net worth in its fiscal year 2021; and (b) failed to
timely notify FHA that it incurred an operating loss exceeding 20
percent of its net worth in its fiscal year 2022.
[[Page 22170]]
17. International City Mortgage, Santa Ana, CA [Docket No. 23-3038-MR]
Action: On August 24, 2023, the Board voted to enter into a
settlement agreement with International City Mortgage (``International
City'') that included a civil money penalty of $17,864. The settlement
did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: International City (a) failed to timely
notify FHA of a state sanction in its fiscal year 2021; and (b)
submitted a false certification to FHA concerning its fiscal year 2021.
18. James B. Nutter & Company, Kansas City, MO [Docket No. 19-1928-MR]
Action: On November 21, 2022, the Board voted to enter into a
settlement agreement with James B. Nutter & Company (``Nutter'') that
included a civil money penalty of $400,000 and reimbursement to FHA of
mortgage insurance payments equal to $175,000 related to eight FHA-
insured loans. The settlement did not constitute an admission of
liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Nutter (a) failed to timely remit
periodic mortgage insurance premiums; and (b) made numerous servicing
violations including improper applications of FHA's loss mitigation
waterfall.
19. K & B Capital Corporation, Boca Raton, FL [Docket No. 22-2075-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with K & B Capital Corporation (``K & B'') that
included a civil money penalty of $20,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: K & B (a) failed to maintain the
minimum required adjusted net worth in its fiscal year 2021; (b) failed
to timely notify FHA of its adjusted net worth deficiency in its fiscal
year 2021; (c) failed to timely notify FHA of operating losses
exceeding 20 percent of its net worth in its fiscal year 2022; and (d)
failed to file quarterly financial statements following its operating
loss in excess of 20 percent of its net worth in its fiscal year 2022.
20. Lenox Financial Mortgage Corporation, Santa Ana, CA [Docket No. 23-
3019-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Lenox Financial Mortgage Corporation
(``Lenox'') that included a civil money penalty of $5,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Lenox failed to timely notify FHA of a
sanction in its fiscal year 2022.
21. Loan Simple, Inc., Englewood, CO [Docket No. 22-2081-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Loan Simple, Inc. (``Loan Simple'') that
included a civil money penalty of $15,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Loan Simple (a) failed to timely notify
FHA of operating losses exceeding 20 percent of its net worth in fiscal
years 2021 and 2022; and (b) failed to file quarterly financial
statements following its operating losses in excess of 20 percent of
its net worth in fiscal years 2021 and 2022.
22. Meadowbrook Financial Mortgage Bankers Corp., Westbury, NY [Docket
No. 23-3035-MR]
Action: On June 21, 2023, the Board voted to enter into a
settlement agreement with Meadowbrook Financial Mortgage Bankers Corp.
(``Meadowbrook'') that included a civil money penalty of $6,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Meadowbrook failed to timely notify FHA
of a sanction in its fiscal year 2022.
23. MidWest Mortgage Association Corporation, Colorado Springs, CO
[Docket No 23-3004-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Midwest Mortgage Association Corporation
(``Midwest'') that included a civil money penalty of $18,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Midwest (a) failed to maintain the
minimum required adjusted net worth during its fiscal years 2021 and
2022; and (b) failed to timely notify FHA of its failure to maintain
the minimum required adjusted net worth during its fiscal year 2021.
24. Mortgage Network Inc., Danvers, MA [Docket No. 22-2080-MR]
Action: On February 2, 2023, the Board voted to enter into a
settlement agreement with Mortgage Network Inc. (``Mortgage Network'')
that included a civil money penalty of $5,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Mortgage Network failed to timely notify
FHA of a sanction in its fiscal year 2022.
25. Mortgage300 Corporation, Palm Beach Gardens, FL [Docket No. 23-
3008-MR]
Action: On August 24, 2023, the Board voted to enter into a
settlement agreement with Mortgage300 Corporation (``Mortgage300'')
that included a civil money penalty of $6,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Mortgage300 failed to timely notify FHA
of a sanction in its fiscal year 2022.
26. Movement Mortgage, LLC, Indian Land, SC
Action: On November 21, 2022, the Board voted to accept a False
Claims Act settlement agreement between the United States and Movement
Mortgage, LLC (``Movement Mortgage''). The settlement required Movement
Mortgage to pay FHA $5,770,820 in restitution and to enter into life-
of-loan indemnification agreements for 9 FHA-insured loans, resulting
in an additional payment to FHA of $464,000. Pursuant to the settlement
agreement, the Board provided a release of administrative liability
under 24 CFR parts 25 and 30 for FHA loans covered by the False Claims
Act settlement.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Between July 2008 and July 2018,
Movement Mortgage knowingly violated FHA requirements while
underwriting FHA-insured loans, which resulted in false claims for
mortgage insurance benefits.
27. Nationwide Home Loans, Inc., Englewood, CO [Docket No. 22-2073-MR]
Action: On February 2, 2023, the Board voted to withdraw the FHA-
approval of Nationwide Home Loans,
[[Page 22171]]
Inc. (``Nationwide'') for a period of one year.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Nationwide (a) failed to maintain the
minimum required adjusted net worth in its fiscal year 2021; and (b)
failed to timely notify FHA of an adjusted net worth deficiency in its
fiscal year 2021.
28. Network Capital Funding Corporation, Irvine, CA [Docket No. 22-
2065-MR]
Action: On February 2, 2023, the Board voted to enter into a
settlement agreement with Network Capital Funding Corporation
(``Network Capital'') that included a civil money penalty of $15,366.
The settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Network Capital (a) failed to timely
notify FHA of a state sanction in its fiscal year 2021; and (b)
submitted a false certification to FHA concerning its fiscal year 2021.
29. NextMortgage, LLC, San Ramon, CA [Docket No. 22-2068-MR]
Action: On February 2, 2023, the Board voted to enter into a
settlement agreement with NextMortgage, LLC (``NextMortgage'') that
included a civil money penalty of $15,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: NextMortgage (a) failed to maintain the
minimum required adjusted net worth in its fiscal years 2021 and 2022;
and (b) failed to timely notify FHA of its adjusted net worth
deficiencies in its fiscal years 2021 and 2022.
30. NMSI, Inc., Los Angeles, CA [Docket No. 22-2082-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with NMSI, Inc. (``NMSI'') that included a civil
money penalty of $5,000. The settlement did not constitute an admission
of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: NMSI failed to timely notify FHA of a
sanction in its fiscal year 2022.
31. On Q Financial, Inc., Tempe, AZ [Docket No. 23-3017-MR]
Action: On February 2, 2023, the Board voted to enter into a
settlement agreement with On Q Financial, Inc. (``On Q'') that included
a civil money penalty of $15,366. The settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: On Q (a) failed to timely notify FHA of
a state sanction in its fiscal year 2021; and (b) submitted a false
certification to FHA concerning its fiscal year 2021.
32. Point Mortgage Corporation, Chula Vista, CA [Docket No. 23-3034-MR]
Action: On June 21, 2023, the Board voted to enter into a
settlement agreement with Point Mortgage Corporation (``Point
Mortgage'') that included a civil money penalty of $12,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Point Mortgage (a) failed to timely
notify FHA of operating losses exceeding 20 percent of its net worth in
its fiscal year 2022, and (b) failed to file quarterly financial
statements following its operating loss in excess of 20 percent of its
net worth in fiscal year 2022.
33. PR Electric Power Authority Employees' Retirement, Santurce, PR
[Docket Nos.22-2023-MRT and 22-2062-MR]
Action: On April 18, 2023, the Board voted to withdraw the FHA
approval of PR Electric Power Authority Employees' Retirement (``PR
Electric'') for a period of one (1) year.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: PR Electric (a) failed to comply with
the annual recertification requirements for fiscal year end June 30,
2021; and (b) failed to timely notify FHA of a change of a corporate
officer during the fiscal year end June 30, 2021.
34. Precision Mortgage, LLC, Rockville, MD [Docket No. 22-2076-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Precision Mortgage, LLC (``Precision
Mortgage'') that included a civil money penalty of $6,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Precision Mortgage failed to maintain
the minimum required adjusted net worth in its fiscal year 2021.
35. Quick Mortgage Corp., Bloomingdale, IL [Docket No. 23-3006-MR]
Action: On April 18, 2023, the Board voted to withdraw the FHA
approval of Quick Mortgage Corp. for a period of one year.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Quick Mortgage Corp. failed to maintain
the minimum required adjusted net worth in its fiscal year end April
30, 2022
36. Reliant Mortgage, LLC, Baton Rouge, LA [Docket No. 22-2029-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Reliant Mortgage, LLC (``Reliant'') that
included a civil money penalty of $15,366. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Reliant (a) failed to timely notify FHA
of a state sanction in its fiscal year end August 31, 2021; and (b)
submitted a false certification to FHA concerning its fiscal year end
August 31, 2021.
37. ReNew Lending Inc., Reno, NV [Docket No. 23-3026-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Renew Lending Inc. (``ReNew'') that included
a civil money penalty of $6,000. The settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: ReNew failed to maintain the minimum
required adjusted net worth in its fiscal year 2022.
38. ResMac Inc., Delray Beach, FL [Docket No. 22-2020-MR]
Action: On February 2, 2023, the Board voted to enter into a
settlement agreement with ResMac, Inc. (``ResMac'') that included a
civil money penalty of $71,250 and a life-of-loan indemnification
agreement for 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 alleged
violation of FHA requirements: ResMac (a) failed to comply with
requests made by FHA to produce information and documentation; (b)
failed to obtain and retain the required documents to properly verify
and reverify the borrower's employment and income; and (c) failed to
timely notify FHA of
[[Page 22172]]
five state sanctions in its fiscal years 2019, 2021, and 2022.
39. Rocket Mortgage, LLC, Detroit, MI [Docket No. 23-3005-MR]
Action: On June 21, 2023, the Board voted to enter into a
settlement agreement with Rocket Mortgage, LLC (``Rocket'') that
included a civil money penalty of $17,864. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Rocket (a) failed to timely notify FHA
that it was sanctioned in its fiscal year 2021; and (b) submitted a
false certification to FHA concerning its fiscal year 2021.
40. Ross Mortgage Company Inc., Westborough, MA [Docket No. 23-3039-MR]
Action: On June 21, 2023, the Board voted to enter into a
settlement agreement with Ross Mortgage Company Inc. (``Ross'') that
included a civil money penalty of $6,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Ross failed to timely notify FHA of a
sanction in its fiscal year end September 30, 2023.
41. Secure One Capital Corporation, Costa Mesa, CA [Docket No. 22-2070-
MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Secure One Capital Corporation (``Secure
One'') that included a civil money penalty of $10,000. The settlement
did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Secure One (a) failed to timely notify
FHA of an operating loss that exceeded 20 percent of its net worth in
its fiscal year 2021; and (b) failed to file quarterly financial
statements following its operating loss in excess of 20 percent of its
net worth in its fiscal year 2021.
42. Siwell, Inc. d/b/a Capital Mortgage Services of Texas, Lubbock, TX
[Docket No. 20-2020-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Siwell, Inc. d/b/a Capital Mortgage Services
of Texas (``Siwell'') that included a civil money penalty of $88,083
and probation. The settlement did not constitute an admission of
liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Siwell (a) failed to timely notify FHA
of five state sanctions in its fiscal years 2016, 2017, 2018,and 2020;
(b) submitted a false certification to FHA concerning its fiscal years
2016, 2017, and 2018; (c) approved a Home Affordable Modification
Program (HAMP) modification and partial claim for a loan that was
ineligible for the loss mitigation it received; and (d) failed to
possess and implement a compliant QC plan.
43. SN Servicing Corporation, Baton Rouge, LA [Docket No. 22-2040-MR]
Action: On November 21, 2022, the Board voted to enter into a
settlement agreement with SN Servicing Corporation (``SN Servicing'')
that included a civil money penalty of $20,732. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: SN Servicing (a) failed to maintain the
minimum required adjusted net worth in its fiscal year 2021; and (b)
failed to timely notify FHA of its adjusted net worth deficiency in its
fiscal year 2021.
44. Southwest Funding, LP, Dallas, TX [Docket No. 22-2078-MR]
Action: On June 21, 2023, the Board voted to enter into a
settlement agreement with Southwest Funding, LP (``Southwest Funding'')
that included a civil money penalty of $160,956. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Southwest Funding (a) failed to adopt
and maintain a valid QC Plan in compliance with FHA requirements; (b)
failed to implement a QC plan in compliance with FHA staffing
requirements; (c) failed to comply with FHA's self-reporting
requirements to report material findings in FHA loans that were not
mitigated; (d) failed to complete timely QC reviews of its Early
Payment Default Loans in compliance with FHA requirements; and (e)
failed to timely update its business information in Lender Electronic
Assessment Portal (``LEAP'') in compliance with FHA requirements.
45. St. Fin Corp. d/b/a Star Financial, Laguna Hills, CA [Docket No.
23-2002-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with St. Fin Corp. d/b/a Star Financial (``Star
Financial'') that included a civil money penalty of $6,000. The
settlement did not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Star Financial failed to timely notify
FHA of a sanction in its fiscal year 2021.
46. TAM Lending Center Inc., Audubon, NJ [Docket No. 23-3001-MR]
Action: On February 2, 2023, the Board voted to enter into a
settlement agreement with TAM Lending Center Inc. (``TAM Lending'')
that included a civil money penalty of $5,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: TAM Lending failed to timely notify FHA
of a sanction in its fiscal year 2022.
47. Titan Mutual Lending Inc., Irvine, CA. [Docket No. 22-2079-MR]
Action: On February 2, 2023, the Board voted to enter into a
settlement agreement with Titan Mutual Lending Inc. (``Titan'') that
included a civil money penalty of $5,000. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Titan failed to timely notify FHA of a
sanction in its fiscal year 2022.
48. Tomo Mortgage, LLC, Austin, TX [Docket No. 23-3017-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Tomo Mortgage LLC (``Tomo'') that included a
civil money penalty of $15,000. The settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Tomo (a) failed to timely notify FHA of
operating losses exceeding twenty percent of its net worth in its
fiscal year 2022, and (b) failed to file quarterly financial statements
following its operating loss in excess of 20 percent of its net worth
in its fiscal year 2022.
49. Umpqua Bank, Tigard, OR [Docket No. 22-2067-MR]
Action: On April 18, 2023, the Board voted to enter into a
settlement agreement with Umpqua Bank (``Umpqua'') that included a
civil money penalty of $5,000. The settlement did
[[Page 22173]]
not constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Umpqua failed to timely notify FHA of a
sanction in its fiscal year 2021.
50. Van Dyk Mortgage Corporation, Grand Rapids, MI [Docket No. 22-2074-
MR]
Action: On February 2, 2023, the Board voted to enter into a
settlement agreement with Van Dyk Mortgage (``Van Dyk'') that included
a civil money penalty of $88,088. The settlement did not constitute an
admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Van Dyk (a) failed to timely notify FHA
of a sanction in its fiscal year 2022; and (b) failed to check on a
semiannual basis that its officers, directors, managers, and
supervisors who participate in FHA programs were eligible to
participate in its fiscal year 2022.
51. V.I.P. Mortgage, Inc., Scottsdale, AZ [Docket No. 22-2025-MR]
Action: On November 21, 2022, the Board voted to enter into a
settlement agreement with V.I.P. Mortgage, Inc. (``V.I.P.'') that
included a civil money penalty of $100,490, a five-year indemnification
agreement for each of two FHA-insured loans, and a requirement to
provide FHA with the lender's quality control reports for a period of
six months.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: V.I.P. (a) failed to ensure its senior
management timely reviewed post-closing quality control findings
reports and timely respond to each instance of fraud, material
representation, or other material findings; (b) failed to report to FHA
instances of fraud, material misrepresentation, and unmitigated
material findings relating to FHA-insured loans; and (c) violated FHA's
branch registration requirements by conducting FHA business at four
locations that V.I.P. did not properly register as FHA branches and for
which V.I.P. did not pay the registration fee.
52. Wendover Financial Services Corporation, Greensboro, NC [Docket No.
22-2015-MR]
Action: On June 16, 2022, the Board voted to withdraw the FHA
approval of Wendover Financial Services Corporation (``Wendover'') for
a period of one year. Wendover appealed the withdrawal but, as part of
a settlement, agreed to dismiss its appeal. The settlement did not
constitute an admission of liability or fault.
Cause: The Board took this action based on the following alleged
violations of FHA requirements: Wendover (a) did not have as its
principal activity the lending or investment of funds in real estate
mortgages or a directly related field in its fiscal year end March 31,
2021; and (b) failed to timely notify FHA of a change in its principal
activity in its fiscal year end March 31, 2021.
53. WesBanco Bank, Inc., Wheeling, WV [Docket No 22-2027-MR]
Action: On November 21, 2022, the Board voted to enter into a
settlement agreement with WesBanco Bank, Inc. (``WesBanco'') that
included a civil money penalty of $35,732 and a five-year
indemnification agreement for 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 alleged
violations of FHA requirements: WesBanco (a) failed to verify a
borrower's liquid assets; (b) failed to verify the borrower's effective
income; (c) failed to downgrade and underwrite a loan manually with a
case number assignment date within three years of the date of transfer
of title through a Pre-Foreclosure Sale; and (d) failed to document
properly the life-of-loan flood certification forms for two FHA-insured
loans for properties in Special Flood Hazard Areas.
54. Western Express Lending d/b/a WeLending, Lake Forest, CA [Docket
No. 22-2060-MR]
Action: On February 2, 2023, the Board voted to withdraw the FHA-
approval of Western Express Lending d/b/a WeLending (``Western
Express'') for a period of one year.
Cause: The Board took this action based on the following alleged
violation of FHA requirements: Western Express failed to file quarterly
financial statements following its operating loss in excess of 20
percent of its net worth in its fiscal year 2021.
II. Lenders That Failed To Timely Obtain the Required Unique Entity
Identifier
Each lender in the following list violated FHA requirements by
failing to timely submit an Information Update through the LEAP and
establish that it had a Unique Entity Identifier (``UEI'') assigned to
it through the System of Award Management website in accordance with
the OMB Directive and applicable FHA handbook.
The Federal Funding Accountability and Transparency Act of 2006, as
amended by the Digital Accountability and Transparency Act of 2014,
required federal agencies to report data about federal awards, which
are tracked using the UEI. The definition of award types was expanded
with the release of 2 CFR part 25 to include loans, insurance, and loan
guarantees, which would include all FHA-approved institutions. All
entities currently conducting or seeking to do business with the
federal government must have a UEI registered in GSA's System of Award
Management.
On August 23, 2022, FHA published Mortgagee Letter 2022-14 (ML 22-
14) that provided information on a new eligibility requirement for all
FHA approved lenders and stipulated the compliance deadline of December
31, 2022. On December 19, 2022, and January 15, 2023, instructive
reminders were sent via email to those institutions that had not input
a UEI in their institution profile in the Lender Electronic Assessment
Portal.
On April 19, 2023, Notices of Deficiency were sent via email to the
lenders that failed to respond to the reminders by entering the UEI in
the LEAP institution profile.
Finally, beginning on May 16, 2023, lenders that had not provided
their respective UEI were issued Notices of Violation for failure to
comply with FHA's eligibility requirements.
The following five lenders are in this category and each paid a
civil money penalty of $3,000.00.
1. Area Federal Credit Union, Aberdeen, SD [Docket No. 23-3213-MR];
2. ClearPath Lending, Irvine, CA [Docket No. 23-3133-MR];
3. Lending Hand Mortgage, LLC, Madison, TN [Docket No. 23-3237-MR];
4. Mortgage One Solutions Inc., Vienna, VA [Docket No. 23-3261-MR];
and
5. Trust Mortgage Lending Corp., Doral, FL [Docket No. 23-3263-MR]
III. Lenders That Failed To Timely Meet Requirements for Annual
Recertification of 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 actions based upon allegations that the
listed lenders failed to comply with FHA's annual recertification
requirements in a timely manner.
[[Page 22174]]
The following lenders paid civil money penalties of $11,864.00:
1. A Plus Mortgage Services, Inc., Muskego, WI [Docket No. 23-3349-
MRT];
2. City National Bank of Florida, Miami, FL [Docket No. 23-3010-
MRT];
3. Eagle Mortgage & Funding Inc., Memphis, TN [Docket No. 23-3356-
MRT];
4. Essential Mortgage Partners, LLC, Kenner, LA [Docket No. 23-
3369-MRT];
5. GreenState Credit Union, North Liberty, IA [Docket No. 23-3374-
MRT];
6. ResMac, Inc., Delray Beach, FL [Docket No. 23-3034-MRT]; and
7. Statewide Funding Inc., Ontario, CA [Docket No. 23-3370-MRT]
The following lenders paid a civil money penalty of $6,000.00:
1. American Heritage Lending, LLC, Irvine, CA [Docket No. 23-3372-
MRT];
2. Bank of Idaho, Pocatello, ID [Docket No. 23-3068-MRT];
3. Mid Valley Financial Services, Fresno, CA [Docket No. 23-3102-
MRT]; and
4. Southwest Bank, Odessa, TX [Docket No. 23-3092-MR]
The following lenders paid civil money penalties of $5,000.00:
1. Ameritrust Mortgage Corp, Tustin, CA [Docket No. 22-2045-MRT];
2. Community First Bank, Kennewick, WA [Docket No. 23-3063-MRT];
and
3. Statebridge Company LLC, Greenwood Village, CO [Docket No. 22-
2050-MRT]
IV. 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. Accelerate Mortgage, LLC, Newark, DE [Docket No. 23-3040 MRT];
2. American Bank of Missouri, Wright City, MO [Docket No. 23-3087-
MR];
3. Graystone Funding Company Salt Lake City, UT
4. Interstate Bank, Perryton, TX
5. James B Nutter and Company, Kansas City, MO [Docket No. 23-3088-
MR];
6. Loan Cabin, Inc., Lombard, IL [Docket No. 23-3012-MRT];
7. Mortgage Master Service Corporation, Kent, WA [Docket No. 23-
3321-MR];
8. Republic First Bank d/b/a Republic Bank, Philadelphia, PA
[Docket No. 23-3075-MR];
9. Rogue Credit Union, Medford, OR [Docket No. 22-2066-MRT];
10. Sprout Mortgage, LLC, Port Saint Lucie, FL [Docket No. 23-3083-
MR];
11. The Home Loan Expert, LLC, Saint Louis, MO [Docket No. 23-3072-
MR];
12. Tri-Emerald Financial Group Inc, Aliso Viejo, CA [Docket No.
22-2077-MRT];
13. US Employees OC Federal Credit Union, Oklahoma City, OK [Docket
No. 22-2047-MRT];
14. Valley Exchange Bank of Lennox, Lennox, SD [Docket No. 23-3098-
MR]; and
15. WestStar Credit Union, Las Vegas, NV [Docket No. 23-3071-MR]
Julia R. Gordon,
Assistant Secretary for Housing--Federal Housing Administration,
Mortgagee Review Board, Chairperson.
[FR Doc. 2024-06735 Filed 3-28-24; 8:45 am]
BILLING CODE 4210-67-P
