Mortgage Daily Logo
mortgage news from industry experts

Lenders Lose FHA Lending Authority

Lenders Lose FHA Lending Authority

Proccessing, reporting at issue

February 25, 2003

By MortgageDaily.com staff

Four single-family Federal Housing Administration (FHA) lenders lost the approval of the U.S. Department of Housing and Urban Development (HUD) and will pay fines for violating agency requirements, according to the federal records administration. Seven other companies settled with HUD for violations and were fined but can remain FHA lenders.

The Federal Register listed the four suspended lenders as Fidelity Mortgage & Funding Co., of Memphis; Allied Financial Services, Inc., of Birmingham; Southern Mortgage Investment Corporation, of Winter Park, Fla.; and Jack Johnson & Associates, operating under the name Home Equity Mortgage, of Riverside, Calif.

The violations of these companies range from using false documentation to process loans, allowing others besides FHA employees to process loans, and not filing or keeping complete origination reports.

The HUD Mortgagee Review Board gave Fidelity and Home Equity each a five-year suspension, and Allied and Southern received three years each.

Phone numbers obtained from directory assistance for Allied and Home Equity were not in service. Messages left at Fidelity and Southern for comment, as well as messages left with the secretary of the Mortgagee Review Board, were not readily returned.

The other seven companies to receive fines from HUD for violations were Custom Mortgage Corporation, of San Antonio, Texas; First Mortgage of Indiana, Inc., of Indianapolis; Golden Empire Mortgage, Inc., of Bakersfield, Calif.; Pac West Financial Corporation, of Ontario, Canada; Ron Simpson & Associates, operating under the name Rockwell Mortgage Company, of Farmington Hills, Mich.; Underline Inc., operating under the name Advantage Mortgage Services, of Santa Ana, Calif.; and Utah Mortgage Loan Corporation, of Midvale, Utah.

These companies’ violations ranged from allowing non-company employees to originate FHA loans, charging borrowers fees that are not allowed by HUD, and failing to make sure that gift letters meet HUD requirements. Many of the companies also failed to develop, maintain, and implement a quality control plan that was up to HUD standards, the Federal Register said.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION