The U.S. Department of Housing and Urban Development's (HUD) Mortgagee Review Board (MRB) has announced that it is immediately and permanently withdrawing approval for AmericaHomeKey Inc. (AHK) to originate and underwrite new mortgages insured by the Federal Housing Administration (FHA). In addition, the MRB is imposing $268,000 in penalties against the Dallas-based mortgage lender for repeated and serious violations of FHA requirements.
The MRB accused AHK of more than a dozen violations, including failure to adequately document the source and/or adequacy of borrowers' funds used for closing and failure to verify the stability of borrowers' income. The agency also alleged that AHK charged borrowers unallowable fees.
‘When we begin to see a pattern of failure to apply our standards, we will act to protect FHA's financial health as well as consumers,’ says Acting FHA Commissioner Carol Galante. ‘We expect lenders to meet our requirements, not just to protect the safety of our insurance fund, but to make certain they don't set up borrowers to fail by putting them into mortgages they ultimately can't sustain.’