David Saks: TEXAS LENDER LOSES HUD APPROVAL TO ORIGINATE FHA LOANS

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

TEXAS LENDER LOSES HUD APPROVAL TO ORIGINATE FHA LOANS

Lender Loses Approval to Originate FHA Loans

AmericaHomeKey, Inc. (AHK), Dallas, Texas, has immediately and premanently lost its approval granted to it by U.S. Department of Housing and Urban Development to originate and underwrite new mortgages insured by the Federal Housing Administration (FHA). In addition, HUD's Mortgagee Review Board (MRB) is imposing $268,000 in penalties against the mortgage lender for repeated and serious violations of FHA requirements.

Among more than a dozen violations of FHA standards, the MRB found AHK:

1. Failed to adequately document the source and/or adequacy of borrowers' funds used for closing;

2. Failed to correctly calculate or adequately document borrowers' income;

3. Failed to verify the stability of borrowers' income;

4. Failed to ensure borrowers were eligible for an FHA-insured mortgage loan;

5. Failed to ensure the property met eligibility requirements;

6. Failed to comply with HUD's property flipping requirements, including a case involving a property purchased for $14,100 that was resold approximately three months later for $125,000; and;

7. Charged borrowers unallowable fees.

The Government National Mortgage Association, commonly known as Ginnie Mae, also terminated AHK as an approved issuer, though AHK was not an active participant in the Ginnie Mae program having never issued Ginnie Mae securities in the past.

The action against AHK announced is the result of HUD's ongoing effort to hold the mortgage industry accountable for the loans they originate, underwrite and/or service.

"When we begin to see a pattern of failure to apply our standards, we will act to protect FHA's financial health as well as consumers," said Acting FHA Commissioner Carol Galante. "We expect lenders to meet our requirements, not just to protect the safety of our insurance fund but to make certain they don't set up borrowers to fail by putting them into mortgages they ultimately can't sustain."

source: Mortgage Fraud Blog




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Comment balloon 1 commentDavid Saks • April 04 2012 09:07AM

Comments

I always wonder what on earth a lender is thinking about when they violate the rules.  No closing is worth loosing your Lending privileges. The legal risks are also a reason why it's hard to believe that people do these things. We have had a few people sent to prison for violations recently.

Betty

Posted by Team Honeycutt (Allen Tate) almost 8 years ago

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