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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 Takes Actions Against Hundreds of Lenders

Recent FHA mortgagee actions

Dec. 27, 2010

By staff

Hundreds of Federal Housing Administration mortgagees recently faced actions over FHA violations. Among the actions were suspensions of origination agreements, terminations of mortgagee approvals and issuances of civil money penalties. Advertising was an issue in several of the cases, while reverse mortgages were an issue in at least one action.

The Department of Housing and Urban Development made a public filing Monday outlining a number of actions recently taken against FHA mortgagees as a result of FHA violations.

Including three actions reported in another story today, HUD said it took actions against 27 FHA mortgagees for a variety of reasons including failing to notify the agency of major company changes, abusing government logos and not properly supervising employees. The following table summarizes the actions.

Mortgagee Location Action Date of Action Reason for Action
1st Alliance Mortgage LLC Houston $150,000 settlement. April 16 Engaged in prohibited branch arrangements, false HUD certifications, failed to implement required QC plan, failed to report compensation on W-2s, charged unallowable fees and failed to properly disclose fees paid outside closing.
Acceptance Capital Mortgage Corp. Spokane, Wash. $14,000 civil money penalty. May 20 Allowed separate legal entity to operate as a branch, allowed loans to be originated by LOs who were also employed by other real estate companies.
Access Mortgage Corp. New Haven, Conn. $3,500 civil money penalty. June 17 Failed to notify HUD/FHA within 10 business days of a change in its "doing business as" name.
Action Mortgage Corp. Cranston, R.I. $2,500 civil money penalty. June 17 Misused official HUD seal on its Web site.
Alethes LLC Lakeway, Texas, 3-year suspension and $7,500 civil penalty April 15 Originated FHA loan after termination of origination agreement. Company was one of 15 FHA mortgagees in January that were hit with a subpoena by HUD IG.
American Advisors Group Irvine, Calif. $3,500 civil money penalty. June 17 Advertisements misrepresented HECM program.
Atlantic Pacific Mortgage Corp. Pembroke Pines, Fla. Lost FHA approval. April 15 Employee or executive who had been indicted been indicted for a criminal offense.
Best Interest Rate Mortgage Company LLC Haddon Township, N.J. FHA approval withdrawn. June 17 Failure to notify HUD that it had been excluded from doing business in Idaho. Improper use of a simulated government form implying FHA endorsement.
Equity Source Home Loans LLC Morganville, N.J. $7,000 civil money penalty. June 17 Misused names of FHA & HUD, misused FHA seal, disseminated simulated government form implying HUD/FHA or government endorsement.
First Rate Capital Corp. Melville, N.Y. Termination of FHA approval. April 15 Failed to notify HUD of the closure of its home office location. Firm previously lost its FHA approval for six months in December 2008.
Gold Star Home Mortgage LLC St. Joseph, Mo. FHA approval withdrawn for 1 year. April 15 Unreported action by the State of Missouri.
Great Country Mortgage Bankers Corp. Coral Gables, Fla. Permanently withdraw FHA approval. May 20 QC, origination and underwriting deficiencies and failure to ensure exclusive employment of employees.
Housing Solutions Inc. Scottsdale, Ariz. Permanently withdraw FHA approval. June 17 Failure to notify HUD went out of business.
Marathon Financial Corp. Southfield, Mich. Permanently lost FHA approval. April 15 Employee or executive had been criminally indicted. In addition, mortgagee failed to meet annual recertification requirements.
Nationwide Equities Corp. Mahway, N.J. $20,500 civil money penalty. April 15 Failed to implement quality control plan.
NFM Inc. Linthicum Heights, Md. $5,000 civil money penalty. June 17 Misused name & seal of FHA and disseminated advertisements implying HUD/FHA endorsement.
Oxford Lending Group L.P. Columbus, Ohio $3,500 civil money penalty. June 17 Improperly used simulated government form implying endorsement by FHA or Government.
Polaris Home Funding Corp. Grandville, Mich. $44,000 settlement that includes indemnification on 7 loans. May 20 Violated FHA staffing requirements; had numerous origination and underwriting deficiencies.
Precision Financial Inc. Syosset, N.Y. FHA approval withdrawn. April 15 Failed to notify HUD that state mortgage license voluntarily surrendered.
Sacramento Mortgage Inc. Sacramento, Calif. Letter of reprimand issued and $7,500 civil money penalty imposed. April 15 Advertisements contained inaccurate and misleading FHA program information.
Silver Key Lending & Investment Group Downers Grove, Ill. $3,500 civil money penalty. June 17 Misused FHA seal and disseminated advertisements implying HUD/FHA endorsement.
Tucson Mortgage Company LLC Tucson, Ariz. FHA approval withdrawn and $7,500 civil money penalty imposed. April 15 Failed to notify HUD of cease-and-desist order by the Arizona Department of Financial Institutions and of surrender of licenses.
Turbo International Corp. dba USA Mortgage Las Vegas FHA approval withdrawn. April 15 Failed to notify HUD of expired state license and failure to meet annual recertification requirements.
Viewpoint Bank Plano, Texas $505,400 administrative payment. May 20 Numerous origination and underwriting deficiencies; failed to ensure exclusive employment by employees.

HUD said that the following mortgagees failed to meet annual recertification requirements and lost their FHA approval for one year.

1. American Home Advisors, Inc., Dana Point, CA

2. At Home Mortgage Brokers, Inc., Phoenix, AZ

3. Bridge Mortgage, Inc., Villa Rica, GA

4. Coastline Mortgage Consultants, LLC, Wilmington, NC

5. Denton County Mortgage Corp., Tyler, TX

6. Fidelity Homes and Loans, Inc., Federal Way, WA

7. Legacy Mortgage LLC, Green Bay, WI

8. Oceanfront Mortgage, Inc., San Diego, CA

9. Alabama Home Mortgage Lending, Birmingham, AL

10. C Bass ABS LLC, New York, NY

11. Castle Home Mortgage Corp., Union, NJ

12. City State Bank, Central City, IA

13. CoFinancial, Inc., Milford, MI

14. Credit Based Asset Servicing, New York, NY

15. DMI Funding, Inc. (Title I), Boise, ID

16. DMI Funding, Inc. (Title II), Boise, ID

17. Gordon Lending Corporation, Dublin, OH

18. Great Harbor Financial Service, Guilford, CT

19. HBM No. One, LLC, Burlington, NC

20. Integrity One Mortgage, Inc., Penns Grove, NJ

21. Mortgage Process Center, Fair Oaks, CA

22. NVX, LLC, Falls Church, VA

23. Powell Financial Services, Inc., San Diego, CA

24. Prosperity Bank St. Augustine, St. Augustine, FL

25. Quickdraw Real Estate Services, Inc., Mill Creek, WA

26. Solutions Financial Group, Inc., Tukwila, WA

27. Three Rivers Financial Services, Inc., Fort Wayne, IN

28. Trinity Financial, Inc., Verona, PA

29. 1st Integrity Mortgage, Inc., Towson, MD

30. Alliance Financing Mortgage Corporation, Mount Prospect, IL

31. American Mortgage Group LLC, Humble, TX

32. American Mortgage Solutions LLC, Burr Ridge, IL

33. Amerinet Financial LLC, Upper Marlboro, MD

34. Apex Funding Inc., Santa Ana, CA

35. Baycal Financial Corporation, Burlingame, CA

36. Benchmark Mortgage Corporation, Schaumburg, IL

37. Broadway Federal Savings and Loan, Los Angeles, CA

38. Building and Loan Mortgage Company, Lenexa, KS

39. C Bass Funding LLC, New York, NY

40. C Bass Funding X LLC, New York, NY

41. Capital Mortgage LLC, Miami, FL

42. Capitol City Bank & Trust Company, Atlanta, GA

43. CCSF LLC, Henderson, NV

44. Champion Mortgage LLC, Corpus Christi, TX

45. Clayson-Mitchell Mortgage Services LC, Salt Lake City, UT

46. Columbia First Mortgage Inc., Battle Ground, WA

47. Community Finance Group Inc., Crystal, MN

48. Community Resource Bank, N.A., Columbia, SC

49. Consumer Lending Inc., Verona, NJ

50. Creative Mortgage Services Inc., Martinez, GA

51. CWA Financial Services Inc., Milledgeville, GA

52. Design Development Mortgage LLC, Fort Collins, CO

53. Direct Mortgage Inc., Norcross, GA

54. Dynamic International Funding, Denver, CO

55. East Shore Mortgage LLC, Madison, CT

56. EDVA Realty Services Inc., Tarzana, CA

57. Element Financial, LLC, Suwanee, GA

58. Ellis Mortgage Company, Poplar Grove, IL

59. E-Tek Capital LLC, Gibbsboro, NJ

60. Emcore Mortgage, LLC, Atlanta, GA

61. Ethical Mortgage Lending LLC, Grove City, OH

62. Evergreen Pacific Mortgage Inc., Eugene, OR

63. Fairfield Financial Mortgage Group, Danbury, CT

64. Firstbank—West Branch, West Branch, MI

65. First Boulder Valley Bank, Boulder, MT

66. First Choice Mortgage Corporation, Stafford, VA

67. First Choice Mortgage Services LLC, Memphis, TN

68. First Primacy Mortgage Corporation, Bel Air, MD

69. First Sierra Mortgage Inc., Sacramento, CA

70. Focus Financial and Mortgage Corporation, Wauconda, IL

71. Fortes Financial Inc., San Diego, CA

72. Founders Mortgage Inc., Edmond, OK

73. Genesis Mortgage Company LLC, Kingwood, TX

74. Gordon Lending Corporation, Dublin, OH

75. Hamilton Mortgage Group LLC, Ridgefield, CT

76. Heights Mortgage Connection Inc., Harker Heights, TX

77. Hometown Community Bank, Braselton, GA

78. Interstate Capital Corporation, Coral Springs, FL

79. JBJ LLC, Henderson, NV

80. Keystone Mortgage Inc., Puyallup, WA

81. LAA Enterprises Inc., Lakeland, FL

82. Lend Select Mortgage, LLC, Mount Laurel, NJ

83. Lowery Mortgage Inc., Cornelius, NC

84. Madison Funding Inc., Baltimore, MD

85. Magnolia Homes Loans, Inc., Oxnard, CA

86. Maximum Mortgage Concepts, West Bridgewater, MA

87. MBS Mortgage Company LLC, Wixom, MI

88. McLaughlin Financial Inc., Salem, MA

89. Metropolitan Mortgage Inc., Providence, RI

90. MidAmerica Mortgage Corporation, New Hope, MN0.

91. MMA Mortgage Investment Corporation, Tampa, FL

92. Mortgage Connection of Evansville Inc., Evansville, IN

93. Mortgage Pros Ltd, Elmhurst, IL

94. Namorex, LLC, Wilton, NH

95. New Hope Community Development Federal Credit Union, Birmingham, AL

96. North Florida Funding Inc., Jacksonville, FL

97. Northpark Community Credit Union, Indianapolis, IN

98. Old Providence Mortgage Company, Farmington, UT

99. Paraiso LLC, Atlanta, GA

100. Paramount Bank, Lexington, KY

101. Pledged Property IV LLC, New York, NY

102. Popular Mortgage Corp., (Title I), Hialeah, FL

103. Popular Mortgage Corp., (Title II), Hialeah, FL

104. Price Financial Services Inc., Rochester, MN

105. Primary Access America Corporation, Mission Viejo, CA

106. Prime Alliance Bank, Wood Cross, UT

107. Prime Source Mortgage, Inc., Scottsdale, AZ

108. Priority Mortgage, Inc., Wayne, IN

109. Pronto Mortgage Lenders Corp., Hialeah Gardens, FL

110. Provident Capital Mortgage, Inc., Cranston, RI

111. R & S Financial Inc., Plymouth, MA

112. Residential Mortgage Services Inc. (Title I), Lexington, KY

113. Residential Mortgage Services Inc. (Title II), Lexington, KY

114. Results One Mortgage Corp., Elmhurst, IL

115. Samsara Mortgage Services Inc., Oakbrook, IL

116. San Juan Mountains Credit Union, Montrose, CO

117. Schyndel Investments Inc., Layton, UT

118. Security Mortgage Corporation, Phoenix, AZ

119. Silver Sierra Mortgage Inc., Cameron Park, AZ

120. Signature Mortgage, LLC, Huntsville, AL

121. Source 1 Capital Mortgage Corporation, Clifton, NJ

122. South Ross Mortgage LLC, Lancaster, SC

123. Trinity Mortgage Company Inc., Fort Wayne, IN

124. United Financial Management Group Inc., Clarks Summit, PA

125. VIP Mortgage Corporation, Danvers, MA

126. Wakefield Lending Company LLC, Raleigh, NC

127. Wonder State Mortgage Inc., Little Rock, AR

The following 88 mortgagees failed to meet annual recertification requirements but subsequently cured the deficiencies. FHA's mortgagee board voted to allow the lenders to settle the violations without admitting fault or liability by paying civil money penalties of between $1,000 and $7,500.

1. 3rd Generation Mortgage, LLC, Bayville, NJ, 10–1930–MRT

2. American Capital Mortgage Bankers, Ltd., Floral Park, NY, 10–1348– MRT

3. Apex Mortgage, LLC, Meridian, ID, 10–1298–MRT

4. Capital Funding and Mortgage Group, Inc., Suwanee, GA, 10–1478–MRT

5. Centrue Bank, Ottawa, IL, 10–1416–MRT

6. Citizens State Bank, New Baltimore, MI, 10–1473–MRT

7. CLO Funding Corporation, Piscataway, NJ, 10–4448–MRT

8. Empire Financial Services Inc., Rockville, MD, 10–1521–MRT

9. Golden Mortgage Corporation, Bridgewater, NJ, 10–1485–MRT

10. Home Mortgage Solutions, LLC, Midlothian, VA, 10–1247–MRT

11. Home Owners Financial Services, Los Angeles, CA, 10–1353–MRT

12. LA Mortgage Services, Inc., Clarks Green, PA, 10–1045–MRT

13. Landon Financial, Inc., Margate, FL, 10–1258–MRT

14. Lighthouse Home Loans, Inc., Salem, OR, 10–1495–MRT

15. Lincoln Financial, Inc., Wayne, NJ, 10–1379–MRT

16. Mortgages Unlimited, Inc., Liberal, KS, 10–1357–MRT

17. PC Funding, Inc., Cerritos, CA, 10–1924–MRT

18. Plum Creek Funding, Inc., Parker, CO, 10–1519–MRT

19. Raustin Mortgage Services LLC, Grandville, MI, 10–1214–MRT

20. RJ Financial Services, Inc., San Antonio, TX, 10–1488–MRT

21. Robert P. Lenz & Associates, Inc., Matthews, NC, 10–1569–MRT

22. Seaside Home Mortgage, Inc., Sebastian, FL, 10–1568–MRT

23. Sun Mortgage Corp. of Missouri, Inc., Saint Louis, MO, 10–1552–MRT

24. Terra Ferma Mortgage, Inc., Houston, TX, 10–1900–MRT

25. Your Money Center, LLC, Hartwell, GA, 10–1449–MRT

26. AAA Financial Corp., Coral Springs, FL, 10–1932–MRT

27. Advantis Credit Union, Portland, OR, 10–1933, MRT

28. American Mortgage Group, Inc., Shawnee, OK, 10–1934, MRT

29. Becker Real Estate Services, Inc., Lynbrook, NY, 10–1935–MRT

30. Carson Bank (f/k/a Mulvane State Bank), Mulvane, KS, 10–1936–MRT

31. CBRE HMF, Inc., Atlanta, GA, 10–1937–MRT

32. Coral Mortgage Bankers Corporation, Chesterfield, MO, 10–1938–MRT

33. Constitution Trust Mortgage Corp., Plainville, MA, 10–1906–MRT

34. Custom Equity Mortgage, LLC, St. Louis, MO, 10–1939–MRT

35. DATCU Credit Union, Denton, TX, 10–1940–MRT

36. Financial Dynamics Funding Corp., Jericho, NY, 10–1941–MRT

37. Great Florida Lending, Inc., Miami, FL, 10–1942–MRT

38. Heritage Bank and Trust, Columbia, TN, 10–1943–MRT

39. Home First Mortgage, Birmingham, AL, 10–1944–MRT

40. Infinity Lending Group, Tustin, CA, 10–1053–MRT

41. IZT Mortgage, Inc. d/b/a Ameritech Mortgage, Walnut Creek, CA, 10–1945–MRT

42. Lexington Investment Mortgage Co., Lexington, KY, 10–1907–MRT

43. Lincoln Mortgage Associates, LLC, Lansdale, PA, 10–1946–MRT

44. Metropolitan Mortgage Broker, LLC, Philadelphia, PA, 10–1947–MRT

45. Mortgage 1st, Inc., Ridgeland, MS, 10–1948–MRT

46. Mortgage Options of America, Inc., Winchester, MA, 10–1949–MRT

47. Northern Funding Corporation, Clifton Park, NY, 10–1412–MRT

48. Organization Matters, Inc., Apple Valley, CA, 10–1950–MRT

49. PLB Lending LLC, Washington, MI, 10–1951–MRT

50. Valley Financial, Inc., Corning, CA, 10–1953–MRT

51. Wellington Funding Group LLC, Scottsdale, AZ, 10–1955–MRT

52. WF and K Mortgage, Inc., Dunmore, PA, 10–1956–MRT

53. ACE Cash Express Home Loans LLC, Irving, TX, 10–1969–MRT

54. Advocate Equities Corp., Brooklyn, NY, 10–1427–MRT

55. Alliance Capital Corporation, Oklahoma City, OK, 10–1970–MRT

56. American Security Financial Corporation, Modesto, CA, 10–1511–MRT

57. Ameristate Bancorp Inc., Youngstown, OH, 10–1971–MRT

58. Associated Capital Resources Inc., Phoenix, AZ, 10–1616–MRT

59. Assured Funding Corporation, Jackson, TN, 10–1248–MRT

60. Bank of Bridger, Bridger, MT, 09–9138–MRT

61. Boulder West Financial Services, Lafayette, CO, 10–1428–MRT

62. Central Bank and Trust, Lander, WY, 10–1471–MRT

63. Creative Mortgage Partners LLC, Maplewood, MN, 09–9128–MRT

64. Crossline Capital Inc., Irvine, CA, 10–1481–MRT

65. Elite Financial Investments Inc., Oakbrook, IL, 10–1122–MRT

66. Enterprise Community Investment Inc., Columbia, MD, 09–9137, MRT

67. First American Dream Mortgage Inc., Chicago, IL, 10–1360–MRT

68. First Financial Bank N.A., Hamilton, OH, 09–9204–MRT

69. First Mortgage Group LLC, Woodstock, GA, 10–1972–MRT

70. First Star Funding Corp., Olympia Fields, IL, 10–1707–MRT

71. Freedom One Funding Inc., Clifton Park, NY, 10–1557–MRT

72. FRMP Inc., Loveland, CO, 10–1431–MRT

73. Grow Mortgage Company, LLC, Franklin, KY, 10–1368–MRT

74. HD Legacy Inc., Placentia, CA, 10–1061–MRT

75. Home Worx Mortgage LLC, Edmond, OK

76. KBA Financial Group LLC d/b/a First Homeland Mortgage, South Orange, NJ 09–9812–MRT

77. Midwest Mortgage Partners LLC, Clive, IA, 10–1466–MRT

78. Mortgage Strategies Inc., Benicia, CA, 10–1973–MRT

79. Mountain State Lending Associates, Inc., Weirton, WV, 10–1903–MRT

80. Nationside Mortgage Inc., Gaithersburg, MD, 10–1114–MRT

81. Potomac Mortgage Capital Inc., Great Falls, VA, 09–9857–MRT

82. Prestige Home Mortgage LLC, Owings Mills, MD, 10–1426–MRT

83. Professional Financial Mortgage Inc., Southfield, MI, 10–1314–MRT

84. Rowlett Mortgage Lending Ltd., Garland, TX, 10–1338–MRT

85. Rudkin Enterprises LLC, Little Rock, AR, 10–1232–MRT

86. Society Financial Corp., Farmington, CT, 10–1419–MRT

87. Superior Lending Associates LC, Orem, UT, 10–1974–MRT

88. Wilmington Finance Inc., Plymouth Meeting, PA, 10–1975–MRT

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