Friday, August 26, 2011

12 Florida lenders lose FHA approval

WASHINGTON – Aug. 1, 2011 – The Federal Housing Administration’s Mortgagee Review Board (MRB) today announced 240 administrative actions against FHA-approved lenders nationwide, with 13 of those in Florida.

MRB sanctions against lenders included reprimands, probations, suspensions, withdrawals of approval and civil money penalties. In Florida, FHA withdrew approval for 12 lenders while one lender will pay a penalty.
“It’s never been more important that lenders doing business with FHA apply our standards to each and every loan they originate and underwrite,” said Acting FHA Commissioner Carol Galante. “FHA requirements ensure homeowners are put on a path of sustainable homeownership and that ultimately helps stabilize entire neighborhoods and communities.”
FHA’s Mortgagee Review Board looks for violations of the agency’s program requirements. For serious violations, the Board can withdraw a lender’s FHA approval so that the lender cannot participate in FHA programs. In less serious cases, MRB enters into settlement agreements with lenders to bring them into compliance. The MRB publishes the actions after all appeals are exhausted and final determinations can be announced publicly.
Florida lenders sanctioned
1. 1st Continental Mortgage Inc., Fort Lauderdale. The MRB permanently withdrew 1st Continental’s FHA approval. MRB says said the lender failed to maintain and implement a Quality Control (“QC”) Plan; and failed to implement and follow HUD/FHA’s Home Equity Conversion Mortgage (HECM) program.
2. Taylor, Bean & Whitaker Mortgage Corp., Ocala. TBW consented to the permanent withdrawal of its FHA approval, without admitting or denying MRB’s factual allegations.
3. WCS Lending, LLC, Boca Raton. The lone Florida lender that did not have approval withdrawn, WCS paid a $3,500 civil money penalty without admitting fault or liability. MRB says WCS posted the HUD seal on a website maintained by a loan officer and failed to register a branch office.
The following Florida lenders were, according to MRB, not in compliance with HUD’s annual recertification requirements:

4. Affiliated Mortgage Company, Tavares
5. Alpine Financial & Mortgage Services Inc., Coral Springs
6. America Mortgage Center LLC, St. Cloud
7. American Capital Financial Trading Corporation, Weston
8. Best Home Loan Inc., Jacksonville
9. Certified Home Loans of Florida Inc., Miami
10. Epix Funding Group Inc., Brandon
11. First Lenders Financial Group Inc., Orlando
12. Gooden Financial Group Inc., Jacksonville
13. Loan Wiz Inc., Miami

The MRB’s decision was published in the Federal Register, which is available online
© 2011 Florida Realtors®

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