Dozens of FHA Mortgagees Face HUD Actions

FHA News

Several dozen Federal Housing Administration mortgagees were hit with actions over the past year. Some paid large penalties, and other lost their FHA approval.

The Department of Housing and Urban Development’s Mortgagee Review Board took actions against 20 FHA mortgagees during the past year or so.

Actions taken by HUD included the issuance of civil money penalties, withdrawals and suspensions of FHA approval, and probations and reprimands.

The actions were disclosed in a public filing.

Among previously announced settlements were an $89 million settlement with Financial Freedom, an $8,500 penalty against SunTrust Mortgage Inc. and a $48 million settlement with United Shore Financial Services LLC.

PHH Home Loans LLC agreed to a previously announced $65 million HUD settlement.

A $4,500 civil money penalty against Stearns Lending LLC was part of an October 2016 settlement. The penalty was the result of Stearns’ failure to notify HUD about a settlement with Arizona regulators.

Other high-profile companies facing HUD actions include Citizens Bank, N.A., which agreed to a $25,500 settlement in December 2016; CMG Mortgage Inc., which was hit with an $8,500 penalty; and James B. Nutter and Co., which paid a $3,500 penalty. In addition, NFM Inc. paid a $6,000 penalty.

Among the larger settlements was one with Magna Bank for $45,500;
MLD Mortgage Inc. dba The Money Store, where a civil penalty was levied for $34,968; a $346,000 penalty against Polonia Bank; and a $4 million settlement with Prudential Huntoon Paige Associates LTD.

There were 52 companies that failed to comply with HUD’s annual recertification requirements in a timely manner agreed to settlement.

Another 23 firms
lost FHA approval for a period of one year because they didn’t meet HUD’s annual recertification requirements.

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