HUD Terminates 24

Federal Housing Administration approval has been yanked from two dozen mortgagees.

In a public filing today, the U.S. Department of Housing and Urban Development said it terminated origination approval agreements as part of its Credit Watch Termination Initiative.

“The agreement may be terminated on the basis of poor performance of FHA-insured mortgage loans originated by the mortgagee,” the filing said. “HUD’s regulations permit HUD to terminate the agreement with preceding 24 months that exceeds 200 percent of the default and claim rate within the geographic area served by a HUD field office, and also exceeds the national default and claim rate.”

Once terminated, a mortgagee can no longer originate FHA-insured loans within the region of HUD field office where the termination occurred.

Loans that were approved or closed before the effective termination data can be submitted for insurance endorsement. All other loans in process must be transferred to an approved mortgagee.

After six months, terminated mortgagees can re-apply for HUD approval.

The following mortgagee branches were listed in today’s filings. Branches listed more than once were terminated in multiple HUD jurisdictions.