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HUD Terminates Three Lenders Ability to Originate FHA Loans

By
Mortgage and Lending with Peachtree SEO

As if we needed any more signs that compliance is king and that doing it the right way is the only way.....

 FHA Cracks Down on Four Lenders

January 25, 2010

The Department of Housing and Urban Development has stopped three lenders from originating Federal Housing Administration loans and suspended another as part of a continuing effort to weed out lenders that don't adhere to FHA rules and policies. The HUD Mortgagee Review Board permanently withdrew FHA approval from Strategic Mortgage Corp., Oklahoma City, ProMortgage Inc., Claremore, Okla., and Americare Investment Group Inc., Arlington, Texas. FHA also suspended Home Mortgage Inc., of Burr Ridge, Ill., for six months. Strategic Mortgage had a 14.7% early default and claim rate and FHA said it charged borrowers impermissible or excessive fees and submitted a false certification to HUD. The MRB also levied a $71,000 civil money penalty against the Oklahoma City company. ProMortgage had a 7.3% early default and claim rate and HUD said it failed to comply with numerous FHA requirements such as reviews of early defaulted loans, verifying borrower income and reporting employee compensation on appropriate forms. The MRB levied a $124,000 CMP against the firm. HUD terminated Americare for failing to make monthly payments on a settlement involving a $124,000 civil money penalty.

credit:  Source Media - Daily Origination News  Jan. 25th, 2010

 

To me, this says HUD remains serious about cleaning up the bad apples.  I couldn't be happier - as a bank loan officer who often sees flagrant violations of HUD's FHA requirements.  As HUD continues to clean house, the mortgage community as a whole benefits, from consumers to realtors, to originators and lenders. 

While the last 2 years has been a dramatic reversal in fortunes for many in our profession, the long-term rewards of this shakeout will help the professionals who remain.

 

Posted by

Brian Anderson

Partner

404-667-8864

Peachtree City, GA

www.peachtreeseo.com

Steve Kantor
BEST AGENT BUSINESS - Bethesda, MD
Best Agent Business - Virtual Assistance

That was fast, considering that the policy was just formalized 1/15/2010. Anyone who thinks that the government can't act fast should look at these cases. Thanks for the information, Brian.

Jan 25, 2010 12:00 PM
Wendi Milinkov
North American Title - Greenwood Village, CO
One call-I've done it all! Sales/Title/Escrow

Thanks so much for the info. It's good to see that at least certain areas of our biz are being cleaned up. This has been loooong overdue!

Jan 25, 2010 12:21 PM
Brian Anderson
Peachtree SEO - Peachtree City, GA
SEO and Social Media Marketin

Yep - I'm with you Wendi! 

Jan 25, 2010 12:49 PM
Kathy Hyatt ~Plantation, Davie, Sunrise REALTOR
Remax Services - Plantation, FL
Broward Realtor Selling Plantation,Davie & Sunrise

Thanks for the post

Jan 25, 2010 10:56 PM