In this year alone, the Federal Housing Administration’s Mortgagee Review Board (MRB) has taken nearly 1,500 administrative sanctions against lenders said the agency in a statement Monday. These sanctions include reprimands, probations, suspensions, withdrawals of approval, and civil money penalties.
The MRB published dozens of administrative actions against FHA-approved lenders who failed to meet its requirements in the Federal Register.
“Lenders should know by now that FHA will not tolerate fraudulent or predatory lending practices,” said FHA Commissioner David Stevens. “Any FHA-approved lender that does business with us must follow our standards. If we determine that our partners are not playing by the rules, we will take action – it’s that simple.”
According to the report, the MRB withdrew FHA approval of 905 lenders for one year for failing to comply with the Department’s annual recertification requirements. Another 147 mortgagees faced a $3,500 civil-money penalty for missing the deadline for annual re-certification requirements. Each of the 147 companies is in compliance now according to the MRB.
Additionally, the MRB into a settlement agreement with Franklin First Financial LTD (Franklin First) requiring Franklin First to pay a civil money penalty in the amount of $413,500, to indemnify HUD on thirty one loans, and reimburse fees to 78 borrowers without admitting fault or liability.
Franklin First allegedly failed to comply with HUD’s requirements concerning the registration of the following “doing business as” (d/b/a) names: Hancock First Mortgage Bankers, Kennedy First Mortgage Bankers, Presidents First Mortgage Bankers, and Senior Funding Group with the states in which it was doing business and with the Department and improperly using the HUD seal on its website. Senior Funding Group is Franklin First’s reverse mortgage division.
The list of companies named in report include CitiMortgage, Equitable Trust Mortgage Corp., Academy Mortgage Corp., VanDyk Mortgage Corp. and more. For a list of all the lenders see here.