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Florida lenders lose FHA approval

August 2, 2011

The Federal Housing Administration’s Mortgagee Review Board (MRB) right now announced 240 administrative actions against FHA-approved lenders nationwide, with 13 of those in Florida.

MRB sanctions against lenders included reprimands, probations, suspensions, withdrawals of approval and civil cash penalties. In Florida, FHA withdrew approval for 12 lenders although one lender will pay a penalty.

“It’s never ever been far more crucial that lenders doing organization with FHA apply our standards to every and every single loan they originate and underwrite,” mentioned Acting FHA Commissioner Carol Galante. “FHA requirements make sure homeowners are put on a path of sustainable Cape Coral homeownership and that ultimately assists stabilize whole neighborhoods and communities.”

FHA’s Mortgagee Assessment Board looks for violations of the agency’s program requirements. For significant violations, the Board can withdraw a lender’s FHA approval to ensure that the lender can not participate in Foreclosures FHA programs. In less serious instances, MRB enters into settlement agreements with lenders to bring them into compliance. The MRB publishes the actions right after all appeals are exhausted and final determinations can be announced publicly.

Florida lenders sanctioned

1. 1st Continental Mortgage Inc., Fort Lauderdale. The MRB permanently withdrew 1st Continental’s FHA approval. MRB says mentioned the lender failed to preserve and implement a Quality Control (“QC”) Plan; and failed to implement and follow HUD/FHA’s House Equity Conversion Mortgage (HECM) program.

2. Taylor, Bean & Whitaker Mortgage Corp., Ocala. TBW consented to the permanent withdrawal of its FHA approval, without admitting or denying MRB’s factual allegations.

3. WCS Lending, LLC, Boca Raton. The lone Florida lender that did not have approval withdrawn, WCS paid a $3,500 civil cash penalty without admitting fault or liability. MRB says WCS posted the HUD seal on a website maintained by a loan officer and failed to register a branch office.

The following Florida lenders were, according to MRB, not in compliance with HUD’s annual recertification requirements:

4. Affiliated Mortgage Company, Tavares
5. Alpine Financial & Mortgage Services Inc., Coral Springs
6. America Mortgage Center LLC, St. Cloud
7. American Capital Financial Trading Corporation, Weston
8. Best Residence Loan Inc., Jacksonville
9. Certified House Loans of Florida Inc., Miami
10. Epix Funding Group Inc., Brandon
11. First Lenders Financial Group Inc., Orlando
12. Gooden Financial Group Inc., Jacksonville
13. Loan Wiz Inc., Miami

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