HUD Suspends Three Lenders From FHA

Posted by Orb Staff on June 11, 2009 No Comments
Categories : Residential Mortgage

S. Department of Housing & Urban Development's (HUD) Mortgagee Review Board has suspended three lenders based on evidence of violations under HUD's regulations. The three lenders are Golden First Mortgage Corp. of Great Neck, N.Y.; Great Country Mortgage Bankers Inc. (GCMB) of Coral Gables, Fla.; and Beneficial Mortgage Corp. of San Juan, Puerto Rico. The lenders cannot originate new Federal Housing Administration (FHA)-insured mortgages until HUD has completed its investigation into their practices. Golden First Mortgage was suspended for failing to notify the agency of [link=http://files.ots.treas.gov/482034.pdf][u]an investigation[/u][/link] by the Office of Thrift Supervision into the business activities of the company's president, David Bijan Movtady, including his involvement in a civil money penalty with the Office of Thrift Supervision. GCMB was suspended as a result of evidence compiled by HUD that the lender violated multiple HUD/FHA requirements, including failure to implement a required quality control plan, failure to ensure that employees worked exclusively for GCMB, failure to disclose business affiliations between GCMB and real estate and title service providers, and failure to properly verify key credit information in 55 FHA mortgage loans reviewed by HUD. The board took action against Beneficial Mortgage after the company failed to notify HUD/FHA of an investigation and sanctions imposed by the Puerto Rico Financial Institutions Commissioner's Office related to mortgage servicing practices. OCIF's actions included revoking Beneficial's license or authorization to originate mortgages in Puerto Rico. HUD is continuing to investigate the business practices of these three lenders. The FHA has been sharpening its focus on keeping bad actors out of its programs. The Helping Families Save Their Homes Act of 2009 grants the agency more authority on this end, providing the FHA additional enforcement tools to police lenders who employ false or misleading marketing tactics. SOUR

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