The U.S. Department of Housing and Urban Development has eliminated the ability of a Georgia-based mortgage company branch to originate government-insured loans.
HUD terminated the origination approval agreement of Putnam Mortgage & Finance, LLC's office at 305 1/2 South Jefferson Ave., in Eatonton, Ga., which is also listed as the company's headquarters. As a result, the affected location of the company can no longer originate and approve loans insured by the Federal Housing Administration.
Putnam has six offices in five states, including two in Georgia, William I. Weeks Sr., chief executive officer of Putnam, explained to MortgageDaily.com in an e-mail message.
"The Eatonton office was terminated from originating HUD/FHA insured single family mortgage loans in HUD's Atlanta jurisdiction only," Weeks stated. "All five of our other offices can originate FHA loans in HUD's Atlanta jurisdiction, and the Eatonton office can originate FHA loans in all four of the other states in which we do business."
The agency took the action against the Putnam branch under the Credit Watch Termination Initiative because it had a default and claim rate in excess of 200 percent of claim rate within the geographic area served the local HUD field office.
Putnam which says it is licensed in Georgia, North Carolina, South Carolina, Tennessee and Florida, touts programs for borrowers with bad credit, bankruptcy and foreclosure as well as manufactured and modular properties.
Under HUD's guidelines, Putnam can apply for a new origination approval agreement after six months if the Secretary of HUD determines that the underlying causes for termination have been remedied.
"We feel confident that office will be reinstated at the end of the 6 month termination period," Weeks added.