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HUD Cracks Down on Mortgagees

HUD Cracks Down on Mortgagees

Federal Register filing reflects

April 29, 2009 (updated May 4)

By staff


The U.S. Department of Housing and Urban Development disclosed actions it has taken against dozens of approved mortgagees — including civil money settlements and the permanent loss of Federal Housing Administration approval. A couple of big names were on the lists.The administrative actions were outlined in the Federal Register today. Public disclosure of the actions is required by Section 202(c) of the National Housing Act.

HUD settled with the following mortgagees for the amounts listed. In addition to the penalties, some of the firms were required to indemnify HUD on FHA-insured loans.

Mortgagee Location Docket No. Amount Date
AAA Worldwide Financial Co Addison, Texas 07-7023-MR $155,126 March 4
Academy Mortgage LLC Catonsville, Md. 07-7039-MR $18,500 March 12
Birmingham Bancorp Mortgage Corp. West Bloomfield, Mich. 08-8017-MR $3,000 Aug. 20, 2008
Colban Funding Inc. Endwell, N.Y. 04-4587-MR $15,000
(approval reinstated)
Dec. 14, 2007
Colony Mortgage Corp. Fairview Park, Ohio 06-6032-MR $214,000 Jan. 23, 2008
Epix Funding Group Brandon, Fla. 08-8031-MR $3,500 Jan. 12
First Community Bank Corpus Christi, Texas 08-8074-MR $22,500 Nov. 21, 2008
Five Star Partnership LLC dba Five Star Mortgage Henderson, Nev. 08-8044-MR $15,000 Feb. 13
Guardian Nationwide Mortgage Inc. Dallas 07-7004-MR $31,500 Dec. 14, 2007
McCue Mortgage Co. Britain, Conn. 08-8018-MR $1,000 Aug. 19, 2008
Moneytree Mortgage Co. Lombard, Ill. 09-9328-MR $1,000 Jan. 15
Mortgage Investors Corp. St. Petersburg, Fla. 07-7022-MR $78,500 Aug. 24, 2008
R & G Mortgage Corp. Hato Rey, P.R. 07-7033-MR $10,000 May 15, 2008
U.S. Bank NA (multifamily) Minneapolis 09-9441-MR $52,500 Dec. 5, 2008
Vega Financial Inc. Las Vegas 08-8043-MR $10,500 Aug. 24, 2008
Wells Fargo Bank N.A. Des Moines, Iowa 07-7014-MR $13,000 April 4, 2008
Westar Mortgage Corp. Albuquerque, N.M. 07-7029-MR $78,790 Aug. 24, 2008
WR Starkey Mortgage Plano, Texas 07-7015-MR $144,431 April 4, 2008

The following firms lost approval to make loans insured by the Federal Housing Administration.

Mortgagee Location Docket No. Date Duration of Termination
BSM Financial LP dba Banksource Mortgage Allen, Texas 05-5047-MR Oct. 4, 2008 permanent
Curry Mortgage Connection LLC Arlington, Texas 9-9555-MR Jan. 9 1 year
Fidelity Home Mortgage Baltimore, Md. 08-8102-MR Oct. 8, 2008 pending further board action
First Rate Capital Corp. dba Axis Mortgage Melville, N.Y. 08-8030-MR Dec. 30, 2008 6-month probation & $3,500 penalty
Gatewood Mortgage Corp. Houston 07-7040-MR Jan. 16 $492,500
Hogar Mortgage and Financial Services Inc. dba Colamerica Montvale, N.J. 08-8081-MR Jan. 16 5 years
Ideal Mortgage Bankers Ltd. dba Lend America, Lending Key Melville, N.Y. 08-8032-MR Dec. 30, 2008 According to Ideal, this was six months’ probation and a $6,500 penalty for a mailer.
Mission Mortgage Corp. Miramar, Fla. 07-7016-MR Nov. 19, 2007 5 years plus $12,000 penalty
North Shore Financial Inc. Meadow, N.Y. 09-9424-MR Jan. 15 pending further board action
Orchid Island TRS LLC Paramus, N.J. 09-9078-MR Jan. 16 1 year
Prime Financial Group Inc. Birmingham Farms, Mich. 09-9423-MR Jan. 15 pending further board action
WCS Lending, LLC Corp. Boca Raton, Fla. 08-8040-MR Oct. 14, 2008 6 months probation

The following mortgagees saw their FHA approval withdrawn for one year because they failed to meet HUD’s requirements for annual re-certification of approval. Among the violations were failure to submit annual re-certification fee, missing reports and failure to submit acceptable audited financials.

Mortgagee Location Date Docket No.
Alliance Mortgage Banking Corp. Levittown, N.Y. Jan. 9 09-9564-MR
Allstate Residential Mortgage Plymouth, Minn. Jan. 9 09-9025-MR
American Benefit Mortgage Inc. Aliso Viejo, Calif. Jan. 9 09-9182-MR
Amerimortgage Bankers LLC Miami Jan. 9 09-9026-MR
Amtrust Mortgage Corp. Atlanta Jan. 9 09-9565-MR
Asset Mortgage of Hawaii LLC Honolulu, Hawaii Jan. 9 09-9006-MR
Bankers Financial Mortgage Group Ltd. n.a. Jan. 9 09-9162-MR
Mortgage Services Inc. Indian Trail, N.C. Jan. 9 09-9024-MR
Bray Mortgage LLC Grand Junction, Colo. Jan. 9 09-9083-MR
Capitol Mortgage Associates Inc. Springfield, Ill. Jan. 9 09-9165-MR
Capital Pacific Mortgage Co. Modesto, Calif. Jan. 9 09-9566-MR
Castle Mortgage Corp. Uniontown, Ohio Jan. 9 09-9075-MR
C & G Financial Services Upland, Calif. Jan. 9 09-9284-MR
Citizen First Financial Inc. Tucker, Ga. Jan. 9 09-9192-MR
Collins Financial Group Inc. Lake city, Fla. Jan. 9 09-9029-MR
Community Home Equities Corp. Hillside, N.J. Jan. 9 09-9126-MR
Consumer Financial Counseling Ltd. Dublin, Ohio Jan. 9 09-9567-MR
CSI Residential Lending Inc. Colleyville, Texas Jan. 9 09-9230-MR
Custom Mortgage LLC Eagle, Idaho Jan. 9 09-9072-MR
DFW Funding Solutions Dallas Jan. 9 09-9568-MR
Financial Funding Services Inc. Coral Gables, Fla. Jan. 9 09-9569-MR
First Choice Lenders Nationwide LLC Highland Village, Texas Jan. 9 09-9570-MR
Flower Bank, FSB Chicago Jan. 9 09-9113-MR
Focus Capital Group Roanoke, Ind. Jan. 9 09-9034-MR
FRMC Financial, Inc. dba First Republic Mortgage Co. Annapolis, Md. Jan. 9 09-9028-MR
Gibraltar Mortgage LLC Jacksonville, Fla. Jan. 9 09-9088-MR
Goodwill Mortgage Services LLC Hartford, Conn. Jan. 9 09-9571-MR
Green Acres Mortgage Inc. Spring Lake Park, Minn. Jan. 9 09-9114-MR
Greenway Lending Group LLC Washington, D.C. Jan. 9 09-9572-MR
Guardian Loan Company of Massapequa, Inc. Clifton Park, N.Y. Jan. 9 09-9573-MR
Hamlin Mortgage Co. Rochester Hills, Mich. Jan. 9 09-9574-MR
Heartland Home Finance Inc. Downers Grove, Ill. Jan. 9 09-9224-MR
Homestead Mortgage Company LLC Columbus, Ohio Jan. 9 09-9015-MR
Mortgage Trust LLC Anderson, Ind. Jan. 9 09-9023-MR
I/C Home Mortgage Services Albuquerque, N.M. Jan. 9 09-9016-MR
IFG Mortgage LLC Coral Gables, Fla. Jan. 9 09-9008-MR
Infinity Residential Funding Inc. Dallas Jan. 9 09-9575-MR
Island Creek Mortgage Corp. Pawtucket, R.I. Jan. 9 09-9576-MR
Legacy Home Mortgage Inc. Palos Hills, Ill. Jan. 9 09-9017-MR
Lending Hand Mortgage Inc. Green Bay, Wis. Jan. 9 09-9153-MR
L. S. Mortgage Solutions Inc. Kingwood, Texas Jan. 9 09-9577-MR
Loan Center of California Inc. Suisun City, Calif. Jan. 9 09-9578-MR
Lownhome Financial Holdings Inc. San Jose, Calif. Jan. 9 09-9579-MR
Luxury Financial Group Inc. Broomfield, Colo. Jan. 9 09-9164-MR
Mile High Banks, N.A. Denver Jan. 9 09-9086-MR
Mortgage Plus Financial Corp. Minneapolis Jan. 9 09-9010-MR
New Horizons Mortgage Company LLC n.a. Jan. 9 09-9185-MR
Pacific Community Mortgage Inc. Anaheim, Calif. Jan. 9 09-9580-MR
Pacific Crest Mortgage Corp. Cathedral City, Calif. Jan. 9 09-9121-MR
Pacifica Direct LLC Encino, Calif. Jan. 9 09-9234-MR
Pacifica West Financial LLC Carlsbad, Calif. Jan. 9 09-9082-MR
Penn Federal Savings Bank Newark, N.J. Jan. 9 n.a.
Cap Financial LLC Henderson, Nev. Jan. 9 09-9020-MR
RC Lending LLC Plano, Texas Jan. 9 09-9096-MR
Regency Mortgage Corp. Salt Lake City Jan. 9 09-9103-MR
S and L Capital Group Inc. Sarasota, Fla. Jan. 9 09-9063-MR
SFG Bancorp, dba Piggybank Home Loans Pleasanton, Calif. Jan. 9 09-9232-MR
Schreiber Financial Group Ltd. Naperville, Ill. Jan. 9 09-9047-MR
Secure Bankers Mortgage Co. Van Nuys, Calif. Jan. 9 09-9584-MR
Shasta Financial Services Inc. Elk Grove, Calif. Jan. 9 09-9583-MR
Southstar Funding LLC Atlanta Jan. 9 09-9585-MR
Stirling Mortgage Corp. Salt Lake City Jan. 9 09-9007-MR
STS Capital Holding Inc. Tampa, Fla. Jan. 9 09-9180-MR
Superior Mortgage Corp. South Hill, Va. Jan. 9 09-9252-MR
Swan Investment International Covina, Calif. Jan. 9 09-9586-MR
The Loan Office Inc. Fort Lauderdale, Fla. Jan. 9 09-9587-MR
Thumb Butte Mortgage Inc. Prescott, Ariz. Jan. 9 09-9227-MR
Titan Capital Funding Inc. Midvale, Utah Jan. 9 09-9588-MR
Trendstar Mortgage, LLC Camp Springs, Md. Jan. 9 09-9149-MR
United Capital Inc. Knoxville, Tenn. Jan. 9 09-9151-MR
Virgin Islands Community Bank Christiansted, Virgin Islands Jan. 9 09-9-MR
Lakeview Mortgage Corp. Chicago Jan. 16 09-9317-MR
Balboa Reinsurance Co. Simi Valley, Calif. Jan. 9 09-9219-MR
Bank Reale Pasco, Wash. Jan. 9 09-9213-MR
Common Cents Mortgage Inc. n.a. Jan. 9 09-9036-MR
Cooperative De Ahorro Y Credito Caribe Guayanilla, P.R. Jan. 9 09-9085-MR
First State Bank & Trust Caruthersville, Mo. Jan. 9 09-9159-MR
Harper & Associates Inc. Cabot, Ark. Jan. 9 09-9014-MR
Infinity Lending Group Tustin, Calif. Jan. 9 09-9220-MR
Key Mortgage Corp. Coeur D Alene, Idaho Jan. 9 09-9051-MR
Level 1 Mortgage LLC Littleton, Colo. Jan. 9 09-9011-MR
Paramount Residential Mortgage Group, Inc. Corona, Calif. Jan. 9 09-9043-MR
New Horizon RE, Inc. dba JL Mortgage Columbia, S.C. Jan. 9 09-9009-MR
San Diego Loans dba San Diego Jan. 9 09-9022-MR
Sun National Bank Vineland, N.J. Jan. 9 09-9091-MR
The Bank of Fayetteville Fayetteville, Ark. Jan. 9 09-9246-MR
The Residential Mortgage Group Inc. Wakefield, Mass. Jan. 9 09-9152-MR
TLP Funding Calabasas, Calif. Jan. 9 09-9228-MR
Viva Advisor Group Inc. Cincinnati Jan. 9 09-9202-MR
West Union Bank West Union, W.V. Jan. 9 09-9064-MR
B & T Mortgage Inc. Glendale, Ariz. Jan. 16 09-9211-MR
Citibank NA New York Jan. 16 09-9094-MR
Corstar Financial Inc. Phoenix Jan. 16 09-9386-MR
EAI Financial Group Inc. Plymouth, Mass. Jan. 16 09-9331-MR
Eastern Financial Home Loans Corp. Hialeah, Fla. Jan. 16 09-9279-MR
First National Bank Pine City Pine City, Minn. Jan. 16 09-9235-MR
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