home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.

Bad Loans Dumped Into FHA

National City, Huntington cited in HUD audit

May 3, 2006


photo of Patrick Crowley
Two of Ohio's largest lenders have been accused by the federal government of improperly steering nearly $300 million in delinquent mortgages into a government-backed insurance program.

Audits performed by the Department of Housing and Urban Development indicate National City Mortgage of Cleveland -- one of the nation's largest FHA lenders -- and Columbus-based Huntington National Bank allegedly dumped the mortgages on the government when borrowers fell behind on payments.

According to copies of the HUD audits, National City is accused of improperly submitting 2,071 loans totaling $263 million in late mortgages for payment; Huntington allegedly submitted 20 loans that totaled $2.2 million.

The problem loans totaled about 3 percent of the loans examined, the government said.

The companies, which have denied any improper or illegal acts, could pay fines and reimbursements to the government, according to the audits.

Huntington spokeswoman Jeri Grier-Ball called the audit's findings "premature."

"We don't think there are any issues here," she told MortgageDaily.com.

The HUD inspector general has recommended that the companies assume liability for the mortgages in case they go into default. National City would have to take back 529 loans totaling $63.5 million; Huntington would have to take 14 loans worth $1.4 million.

Asked if she believes Huntington will be fined Grier-Ball said she did not know but that the company "has not heard back" from the government about the potential of any fines or reimbursements.

National City spokeswoman Kelly Wagner Amen told MortgageDaily.com that the lender "never knowingly violated the requirements or endangered the reputation of our company or employees."

The audits include several recommendations for the companies to take action to prevent further problems. In written responses to the government, the companies pledged to improve employee training and take other preventive steps.

"We are taking significant steps to ensure our employees are properly trained and closely monitoring our operations," National City's Amen said.

The government said both companies were flagged for audits because of high rates of submitting late loans to the insurance program.

Both companies said an incredibly high volume of loans may have lead to some of the alleged problems.

In its written response to the government, Huntington said "while certain inaccuracies occurred in a handful of FHA loans ... any oversights were the product of human error and occurred as a result of high refinance volume and inexperienced staff."

Amen said the loans being questioned represent less than one-half of one percent of National City's loan submissions and less than 1 percent of the late submissions contain incorrect certifications.

Like many lenders, National City was handling a record volume of loans during the time period covered by the audit, she said.

Patrick Crowley is a feature journalist and blogger for MortgageDaily.com. He is also a reporter, blogger and columnist for The Cincinnati Enquirer.
e-mail Patrick at: [email protected]

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders