Three Lenders Latest To Be Suspended By HUD From FHA

HUD has announced the suspension of three lenders – these company’s FHA activity has been halted pending further investigation by HUD into their business practices.

lockedkeyboardThe three lenders are: Golden First Mortgage Corp of Great Neck, NY; Great Country Mortgage Bankers, Inc. of Coral Gables, FL; and Beneficial Mortgage Corporation of San Juan, PR.

Any Lender or Broker subject to suspension is prohibited from originating new FHA-insured mortgages pending completion of HUD’s investigation into their lending practices.

The reasons for each company’s suspension vary and include failure to implement a required quality control plan, failure to ensure that employees worked exclusively for the company, failing to notify HUD/FHA of an investigation by the Office of Thrift Supervision (OTS) into the business activities of the company’s president and failing to notify HUD/FHA of an investigation and sanctions imposed by the another regulatory agency related to mortgage servicing practices.

The message from HUD is clear – if you are involved with HUD lending you need to be compliant with all rules and regulations.

In the past many companies – especially net branch groups played fast and loose with state and federal regulations. Many mortgage companies ignored HUD rules and regulations thinking that they are not paying attention.

That (if it was true) has changed.

If your company’s compliance department is not paying attention they could one of the next companies to be featured in a HUD press release.

For more information about these companies and HUD see the full press release:
http://www.hud.gov/news/release.cfm?content=pr09-086.cfm

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