Five mortgage lenders, including a branch of the largest U.S. mortgage broker, have lost their approval to originate FHA-insured loans.
A Georgia branch of Allied Home Mortgage Capital Corp. had its origination agreement terminated by the Department of Housing and Urban Development, according to a Federal Register notice from the agency. The branch, located in Garner, was terminated under the FHA Credit Watch Termination Initiative on Mar. 30.
On its Web site, Allied says, "We are the largest branch network company in America."
Origination Approval Agreements were also terminated for four firms and branches located in Denver including, Creative Mortgage Inc.; Everett Financial Inc.; International Lending Solutions Inc.; and WR Starkey Mortgage LLP.
FHA-approved lenders with default rates in excess of 200 percent of FHA's local default and claim rates and in excess of the national rate are subject to termination, the notice said.
Terminated mortgagees can apply for a new agreement after six months if they still meet approval requirements, HUD said