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

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

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.




HUD Suspends FHA Lending Authority For Two Lenders

Tampa company accused of fraud, sexual harassment

January 15, 2002

By SAM GARCIA

The Department of Housing and Urban Development (HUD) announced this week that its Mortgagee Review Board (MRB) withdrew authority for two separate mortgage companies to make or acquire Federal Housing Administration (FHA) insured loans. The MRB also proposed a three-year withdrawal of FHA approval from three other lenders.

The MRB is comprised of FHA Commissioner John Weicher and six other senior HUD officials. Weicher said, "lenders who think about breaking the rules should take notice that HUD will aggressively enforce its rules and the consequences can be severe."

According to HUD's announcement, the Foundation Funding Group Inc., of Tampa, Florida, permanently lost its FHA approval because of "serious violations of FHA lending requirements that included improper cash-outs when originating streamlined, refinanced mortgages, and the improper refinancing of fixed rate and adjustable rate mortgages." HUD also said that Foundation Funding failed to implement a HUD-mandated quality control plan that requires lenders to make adequate and timely reviews to detect possible violations, including fraud.

Foundation Funding is the parent of GreatStone Mortgage, which in September surrendered its lending license to the Florida Department of Banking and Finance. In its announcement, Florida said the license surrender was the result of complaint filed in August after GreatStone declined to permit an examination of its books, accounts, and records as required by law.

Former employees of GreatStone met with the St. Petersburg Times (Times), reportedly accusing the company of fraudulent activities and sexual harassment.

HUD withdrew FHA approval from Whittier, California-based Omega Financial Services, Inc., for three years. HUD said the company used falsified documentation in originating FHA loans, and failed to implement a HUD-required quality control plan. Omega did not return calls from MortgageDaily.com.

HUD said its MRB also proposed a three-year withdrawal of FHA approval from a New Jersey lender, a Tennessee lender and a Utah lender for violating a number of FHA requirements, including improperly qualifying loan applicants, failing to implement a quality control plan, failing to remit upfront mortgage insurance premiums and failing to submit loans for endorsement to FHA in a timely manner.

MortgageDaily.com
According to HUD spokesman Lemar Wooley, HUD will not release the names of the three lenders recommended for suspension until the 30 day appeal period is up.

Sam Garcia has been in mortgage lending since 1980, and is managing editor of MortgageDaily.com. He also owns and operates CloseNow.com, a real estate portal site.

email: [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

MBS

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