81_FR_29381 81 FR 29290 - Mortgagee Review Board: Administrative Actions

81 FR 29290 - Mortgagee Review Board: Administrative Actions

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 81, Issue 91 (May 11, 2016)

Page Range29290-29292
FR Document2016-11045

In compliance with Section 202(c)(5) of the National Housing Act, this notice advises of the cause and description of administrative actions taken by HUD's Mortgagee Review Board against HUD-approved mortgagees.

Federal Register, Volume 81 Issue 91 (Wednesday, May 11, 2016) 
[Federal Register Volume 81, Number 91 (Wednesday, May 11, 2016)]
[Notices]
[Pages 29290-29292]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-11045]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5948-N-01]


Mortgagee Review Board: Administrative Actions

AGENCY: Office of the Assistant Secretary for Housing-Federal Housing 
Commissioner, HUD.

ACTION: Notice.

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SUMMARY: In compliance with Section 202(c)(5) of the National Housing 
Act, this notice advises of the cause and description of administrative 
actions taken by HUD's Mortgagee Review Board against HUD-approved 
mortgagees.

FOR FURTHER INFORMATION CONTACT: Nancy A. Murray, Secretary to the 
Mortgagee Review Board, 451 Seventh Street SW., Room B-133/3150, 
Washington, DC 20410-8000; telephone (202) 708-2224 (this is not a 
toll-free number). Persons with hearing or speech impairments may 
access this number through TTY by calling the toll-free Federal 
Information Service at (800) 877-8339.

SUPPLEMENTARY INFORMATION: Section 202(c)(5) of the National Housing 
Act (12 U.S.C. 1708(c)(5)) requires that HUD ``publish a description of 
and the cause for administrative action against a HUD-approved 
mortgagee'' by the Department's Mortgagee Review Board (``Board''). In 
compliance with the requirements of Section 202(c)(5), this notice 
advises of actions that have been taken by the Board in its meetings 
from October 1, 2014 to September 30, 2015.

I. Civil Money Penalties, Withdrawals of FHA Approval, Suspensions, 
Probations, Reprimands, and Settlements

1. Allied First Bank, SB, Oswego, IL [Docket No. 15-1506-MR]
    Action: On June 19, 2015, the Board entered into a settlement 
agreement with Allied First Bank, SB (``AFB'') that required AFB to pay 
a civil money penalty in the amount of $17,000 without admitting fault 
or liability.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements alleged by HUD: AFB (a) improperly used the 
name of FHA in certain correspondence to imply the correspondence was 
from and/or endorsed by HUD/FHA; (b) failed to timely notify HUD that 
AFB has entered into a written agreement with the Federal Reserve Board 
of Chicago on May 22, 2014 and; (c) failed to timely notify HUD that 
AFB had entered into a consent order with the Federal Deposit Insurance 
Corporation and the State of Illinois Department of Financial and 
Professional Regulation.

2. American Home Free Mortgage, Prosper, TX [Docket No. 14-1682-MR]

    Action: On May 21, 2015, the Board voted to withdraw the FHA 
approval of American Home Free Mortgage (``AHFM'') on a permanent 
basis. On July 24, 2015, the Board entered into a settlement agreement 
with AHFM that required AHFM to pay a civil money penalty in the amount 
of $169,419, and to abide by the Board's action concerning the 
permanent withdrawal of its FHA approval.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements alleged by HUD: AHFM (a) submitted false 
certifications to HUD/FHA in 2010, 2012 and 2013 for the annual 
recertifications of its FHA approval; (b) failed to ensure that 
individuals originating FHA insured loans were exclusively employed by 
AHFM; (c) failed to implement a Quality Control Plan in compliance with 
HUD/FHA requirements; (d) failed to conduct Quality Control reviews in 
accordance with HUD/FHA requirements; (e) participated in a scheme to 
inflate the amount of fees collected in loan transactions by disguising 
them as construction fees; (f) submitted loan case binders that falsely 
identified fees as construction costs or fees; (g) provided false 
certifications to HUD/FHA regarding conflicts of interests; (h) allowed 
personnel involved in the day-to-day origination process to conduct 
Quality Control reviews; (i) allowed the identification number of a 
terminated employee to be used to access FHA Connection; and (j) failed 
to require it's appraiser to explain the use of a comparable sale that 
was over 12 months old.

3. Bogman Inc., Silver Spring, MD [Docket No. 15-1507-MR]

    Action: On August 11, 2015, the Board entered into a settlement 
agreement with Bogman Inc., (``Bogman'') that required Bogman to pay a 
civil money penalty in the amount of $50,000 without admitting fault or 
liability and to submit, on a quarterly basis during the period of one 
year, written reports, describing the methodology and findings of 
quality control reviews performed by an independent third party 
regarding Bogman's compliance with applicable HUD Handbooks and 
Mortgagee Letters, including compliance with servicing and loss 
mitigation requirements.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements alleged by HUD: Bogman (a) failed to properly 
establish and implement a Quality Control Plan; (b) used the services 
of a third party servicer that was not an approved HUD/FHA approved 
mortgagee; (c) failed to properly service defaulted FHA insured loans 
and failed to ensure its foreclosure management review checklist was in 
compliance with HUD/FHA requirements; and (d) failed to use the proper 
loss mitigation techniques with borrowers.

4. City First Mortgage Services LLC., Bountiful, UT [Docket No. 15-
1657-MR]

    Action: On June 30, 2015, the Board issued a letter of reprimand to 
City First Mortgage Services, LLC., (``CFMS''), and also required CFMS 
to pay a civil money penalty in the amount of $40,500.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements alleged by HUD: CFMS (a) failed to comply with 
Generally Accepted Accounting Principles; (b) falsely certified to HUD/
FHA that it had complied with all HUF/FHA regulations in its June 25, 
2014 annual certification; (c) failed to promptly notify HUD/FHA it had 
entered into a consent order with the State of Illinois Department of 
Financial and Professional Regulation, Division of Banking and paid a 
$2,500 fine to settle allegations that it allowed an unlicensed office, 
branch manager and loan originator to conduct business without the 
proper licenses or sponsorship from CFMS; and (d) failed to timely 
notify HUD/FHA that it had entered into a

[[Page 29291]]

settlement agreement with the State of California.

5. Fifth Third Bank, Cincinnati, OH [Docket No. 16-1634-MR]

    Action: On September 15, 2015, the Board voted to accept a proposed 
settlement between the United States and Fifth Third Bank (``FTB''). 
Pursuant to the terms of the Settlement, FTB agreed to: (a) Pay a total 
of $85 million to resolve potential liability under the False Claims 
Act in connection with 519 loans that went to claim; (b) indemnify HUD/
FHA for the life of the loan on all losses associated with 920 loans; 
(c) make an administrative payment totaling $ 2,034,000; and (d) make 
an administrative payment to HUD/FHA of $441,000.
    Cause: The Board took this action based on (a) FTB's own self-
reporting that it had not fully complied with its obligation to notify 
HUD/FHA of early payment defaults in loans that contained significant 
deficiencies, and (b) an investigation by the U.S. Attorney's Office 
for the Southern District of New York based on a Qui Tam action.

6. First Liberty Financial Group, Louisville, KY [Docket No. 15-1500-
MR]

    Action: On September 11, 2015, the Board entered into a Settlement 
Agreement with First Liberty Financial Group, (``FLFG'') that required 
FLFG to pay a civil money penalty in the amount of $66,700 without 
admitting fault or liability.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements alleged by HUD: FLFG (a) failed to establish 
and implemented a Quality Control Plan in accordance with HUD/FHA 
requirements; (b) failed to ensure it conducted reviews of loans which 
went into default within the first six months of repayment; (c) failed 
to evidence that it had conducted a pre-insurance review for loans 
insured under the Lender Insurance Program; (d) failed to comply with 
HUD/FHA rules, regulations and guidelines in originating and 
underwriting FHA insured loans; (e) failed to sign the certification on 
page 4 of the final HUD form 92900-A for 26 loans; (f) failed to comply 
with HUD/FHA documentation requirements for the borrowers' source of 
funds for one loan; (g) failed to timely remit Mortgage Insurance 
Premiums as required by HUD/FHA; and (h) failed to notify HUD/FHA of a 
business change.

7. Infinity Home Mortgage Company, Inc. Cherry Hill, NJ [Docket No. 14-
1641-MR]

    Action: On November 10, 2014, the Board issued a Notice of 
Administrative Action permanently withdrawing the FHA approval of 
Infinity Home Mortgage Company, Inc., (``IHMC'').
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements alleged by HUD: IHMC (a) failed to establish 
and implemented a Quality Control Plan in accordance with HUD/FHA 
requirements; (b) failed to complete Quality Control reviews timely and 
respond to Quality Control review findings reported by HUD/FHA; (c) 
failed to ensure it conducted early payment default Quality Control 
reviews in accordance with HUD/FHA requirements; (d) failed to ensure 
borrowers were eligible for FHA-insured financing; (e) failed to 
properly document the borrowers' source/adequacy of funds used for down 
payments and/or closing costs; (f) failed to properly document the 
income utilized to qualify borrowers; (g) failed to resolve 
discrepancies and/or conflicting information prior to submitting loans 
for FHA approval and ensure outstanding judgments were satisfied; (h) 
failed to ensure the Uniform Residential Appraisal Report supported the 
final value conclusion and/or failed to ensure the health and safety of 
the subject property; and (i) failed to comply with HUD/FHA 
documentation requirements.

8. Integrity Home Loans of Central Florida, Lake Mary, FL [Docket No. 
14-1727-MR]

    Action: On March 19, 2015, the Board voted to withdraw the FHA 
approval of Integrity Home Loans of Central Florida, (``IHL'') for a 
period of one year. On May 18, 2015, the Board entered into a 
settlement agreement with IHL that required IHL to pay a civil money 
penalty in the amount of $3,000 and abide by the Board's withdrawal of 
IHL's FHA approval.
    Cause: The Board took this action based on the following violation 
of HUD/FHA requirements alleged by HUD: IHL operated a branch office in 
violation of HUD/FHA requirements.

9. MetLife Bank, N.A., Morristown, NJ [Docket No.16-1631-MR]

    Action: On February 24, 2015, the Board voted to accept the terms 
of a settlement agreement between the United States of America, 
(``USA'') and MetLife Bank, N.A., (``MLB'') that required MLB to pay 
$123,500,000 to the USA. As part of the settlement, the Board released 
MLH from liability for any civil money penalty due to improper 
origination of FHA-insured loans for which FHA paid a claim for 
mortgage insurance through August 25, 2014. The settlement expressly 
excluded streamline refinances and Home Equity Conversion Mortgage 
loans from the release.
    Cause: The Board took this action in order to resolve allegations 
that MetLife failed to properly underwrite FHA-insured loans that 
resulted in claims being submitted to FHA through August 25, 2014.

10. Putnam Bank, Putnam, CT [Docket No. 15-1504-MR]

    Action: On June 4, 2015, the Board entered into a settlement 
agreement with Putnam Bank, (``PB'') that required PB to pay a civil 
money penalty in the amount of $5,000.
    Cause: The Board took this action based on the following violation 
of HUD/FHA requirements alleged by HUD: PB failed to obtain, prior to 
closing, documentation of the terms of a $5,000 loan from the 
borrower's father that the borrower used for the down payment.

11. Residential Finance Corporation, Columbus, OH [Docket No. 14-1708-
MR]

    Action: On April 28, 2015, the Board issued a Notice of 
Administrative Action to Residential Finance Corporation (``RFC'') 
withdrawing RFC's FHA approval for a period of one year.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements alleged by HUD: RFC (a) failed to ensure the 
borrower made the minimum required investment; (b) failed to document a 
borrower's funds to close on a loan; (c) failed to resolve questions 
concerning a borrower's delinquent federal debt; and (d) failed to 
properly calculate a borrower's income used to qualify the borrower.

12. Reverse Mortgage Solutions, Inc., Spring, TX [Docket No. 16-1632-
MR]

    Action: On May 21, 2015, the Board voted to accept a settlement 
agreement between Walter Investment Management Corporation and its 
subsidiary Reverse Mortgage Solutions, Inc. (``RMSI'') and the United 
States that required RMSI to pay the United States the amount of 
$26,250,000.00. Pursuant to the terms of the settlement, the Board 
settled potential administrative actions by the Board against RMSI in 
connection with insurance claims filed from August 13, 2009 to December 
15, 2014 for loans insured under the Home Equity Conversion (``HECM'') 
Program.
    Cause: The Board took this action based on a complaint filed under 
the False Claims Act that alleged that RMSI

[[Page 29292]]

had failed to self-curtail debenture interest with respect to HECM 
claims that were filed with HUD, and that a subsidiary of RMSI acted as 
the real estate agent for the disposition of the HECM properties after 
foreclosure, which resulted in the payment of commissions in violation 
of the anti-referral fee prohibitions of the Real Estate Settlement 
Procedures Act.

13. Sahara Mortgage Corporation, Las Vegas, NV [Docket No. 15-1502-MR]

    Action: On March 30, 2015, the Board issued a Notice of 
Administrative Action withdrawing the FHA approval of Sahara Mortgage 
Corporation, (``SMC'') for a period of one year.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements alleged by HUD: SMC failed to pay HUD in 
accordance with SMC's indemnification agreements with HUD/FHA.

14. USLending & Finance, LTD, Downers Grove, IL [Docket No. 15-1505-MR]

    Action: On July 1, 2015, the Board entered into an agreement with 
USLending &Finance, LTD (``USLending'') that required USLending to pay 
$18,500 without admitting fault or liability.
    Cause: The Board took this action based on the following violations 
of HUD/FHA requirements alleged by HUD: USLending (a) failed to provide 
documentation it had implemented a Quality Control Plan in accordance 
with HUD/FHA requirements; and (b) failed to ensure its officers and 
employees were exclusively employed by USLending.

II. Lenders That Failed To Timely Meet Requirements for Annual 
Recertification of HUD/FHA Approval

    Action: The Board entered into settlement agreements with the 
lenders listed below, which required the lender to pay a civil money 
penalty without admitting fault or liability.
    Cause: The Board took this action based upon allegations that the 
lenders listed below failed to comply with the Department's annual 
recertification requirements in a timely manner.

1. BCB Community Bank, Bayonne, NJ ($16,000) [Docket No.15-1666-MRT]
2. Bondcorp Realty Services, Inc., Newport Beach, CA ($4,250) [Docket 
No.15-1859 MRT]
3. Case Credit Union, Lansing, MI ($3,500) [Docket No.15-1608-MRT]
4. Citizens Trust Bank, Atlanta, GA ($3,500) [Docket No.15-1760-MRT]
5. City National of New Jersey, Newark, NJ ($3,500) [Docket No.15-1624-
MRT]
6. Darien Rowayton Bank, Darien, CT ($3,500) [Docket No.15-1603-MRT]
7. First Key Mortgage, LLC, Rye Brooke, NY ($3,500) [Docket No.14-1706-
MRT]
8. Lone Star National Bank, McAllen, TX ($3,500) [Docket No.14-1569-
MRT]
9. Members Cooperative Credit Union, Cloquet, MN ($3,500) [Docket 
No.15-1600-MRT]
10. Northland Financial, Steele, ND ($3,500) [Docket No.15-1614-MRT]
11. Prairie Bank of Kansas fka Farmers National Bank, Stafford, KS 
($3,500) [Docket No.14-1661-MRT]
12. Urban Fulfillment Services, LLC f/k/a Prodovis Mortgage, LLC, 
Broomfield, CO ($3,500) [Docket No.13-1482-MRT]
13. Progressive Bank, Monroe, LA ($3,500) [Docket No.15-1591-MRT]
14. Teamsters Credit Union, Detroit, MI ($3,500) [Docket No.15-1612-
MRT]
15. Valley Exchange Bank of Lennox, Lennox, SD ($3,500) [Docket No.15-
1606-MRT]

III. Lenders That Failed To Meet Requirements for Annual 
Recertification of HUD/FHA Approval

    Action: The Board voted to withdraw the FHA approval of each of the 
lenders listed below for a period of one (1) year.
    Cause: The Board took this action based upon allegations that the 
lenders listed below were not in compliance with the Department's 
annual recertification requirements.

1. Acadia Federal Savings Bank, Falls Church, VA [Docket No.15-1754-
MRT]
2. Approved Home Lending, Inc., Miami FL [Docket No.15-1509-MRT]
3. Blufi Lending Corporation, San Diego, CA [Docket No.15-1757-MRT]
4. Central State Bank., Quincy, IL [Docket No.15-1759-MRT]
5. Classic Home Financial, Inc., Houston, TX [Docket No.15-1762-MRT]
6. Connecticut River Bank., Charlestown, NH [Docket No.15-1764-MRT]
7. Consumers Mortgage Corp, Middletown, NJ [Docket No.15-1765-MRT]
8. Denver Mortgage Company, Greenwood Village, CO [Docket No.15-1766-
MRT]
9. Dominion Residential Mortgage, LLC., Fairfax, VA [Docket No.15-1767-
MRT]
10. First Mutual Corporation, Cherry Hill, NJ [Docket No.13-1768-MRT]
11. Firstrust Mortgage, Inc., Overland Park, KS [Docket No.15-1627-MRT]
12. Franklin Credit Management Corporation, Jersey City, NJ [Docket 
No.14-1702-MRT]
13. Funding Source, LLC., Syracuse, NY [Docket No.15-1771-MRT]
14. GMS Funding LLC., West Columbia, SC [Docket No.15-1722-MRT]
15. Golden Pacific Bank, Sacramento, CA [Docket No.15-1773-MRT]
16. Guardian Credit Union, West Allis, WI [Docket No.15-1634-MRT]
17. Homefirst Mortgage LLC., Jackson, MS [Docket No.15-1522-MRT]
18. Jayco Capital Group, Inc., Irvine, CA [Docket No.15-1775-MRT]
19. Landmark Bank NA, Columbia, MO [Docket No.14-1551-MRT]
20. Liberty Capital Financial, Damascus, MD [Docket No.15-1776-MRT]
21. Merchants & Planters Bank, Boilvar, TN [Docket No.15-1777-MRT]
22. Mortgage Bank of California, Manhattan Beach, CA [Docket No.15-
1778-MRT]
23. Prime Bank, Edmond, OK [Docket No.15-1621-MRT]
24. Retreat Capital Management Inc., Irving, TX [Docket No.15-1779-MRT]
25. Rocky Mountain Bank, Jackson, WY [Docket No.15-1780-MRT]
26. South Valley Bank and Trust, Klamath Falls, OR [Docket No.15-1651-
MRT]
27. Spectra Funding Inc., Carlsbad, CA [Docket No.15-1782-MRT]
28. StellarOne Bank, Christianburg, VA [Docket No.15-1783-MRT]
29. Steward Investments, Inc., Carlsbad, CA [Docket No.15-1784-MRT]
30. The Cadle Company, Newton Falls, OH [Docket No.14-1648-MRT]
31. The Lending Company Inc., Phoenix, AZ [Docket No.15-1787-MRT]
32. Washington Savings Association, Philadelphia, PA [Docket No.15-
1789-MRT]
33. Workers Credit Union, Fitchburg, MA [Docket No.15-1510-MRT]

    Date: May 3, 2016.
Edward L. Golding,
Principal Deputy Assistant Secretary, Chairman, Mortgagee Review Board.
[FR Doc. 2016-11045 Filed 5-10-16; 8:45 am]
 BILLING CODE 4210-67-P

29290 Federal Register / Vol. 81, No. 91 / Wednesday, May 11, 2016 / Notices References I. Civil Money Penalties, Withdrawals identification number of a terminated Executive Order 13691 can be found of FHA Approval, Suspensions, employee to be used to access FHA at: https://www.whitehouse.gov/the- Probations, Reprimands, and Connection; and (j) failed to require it’s press-office/2015/02/13/executive- Settlements appraiser to explain the use of a order-promoting-private-sector- 1. Allied First Bank, SB, Oswego, IL comparable sale that was over 12 cybersecurity-information-shari. [Docket No. 15–1506–MR] months old. For additional information about the Action: On June 19, 2015, the Board 3. Bogman Inc., Silver Spring, MD ISAO Standards Organization, draft entered into a settlement agreement [Docket No. 15–1507–MR] products, and how you can best with Allied First Bank, SB (‘‘AFB’’) that Action: On August 11, 2015, the participate in the standards required AFB to pay a civil money Board entered into a settlement development process, please go to penalty in the amount of $17,000 agreement with Bogman Inc., www.ISAO.org or email Contact@ without admitting fault or liability. (‘‘Bogman’’) that required Bogman to ISAO.org. Cause: The Board took this action pay a civil money penalty in the amount based on the following violations of of $50,000 without admitting fault or Authority: 6 U.S.C. 131–134; 6 CFR 29; HUD/FHA requirements alleged by liability and to submit, on a quarterly E.O. 13691. HUD: AFB (a) improperly used the basis during the period of one year, Dated: May 9, 2016. name of FHA in certain correspondence written reports, describing the Andy Ozment, to imply the correspondence was from methodology and findings of quality Assistant Secretary, Cybersecurity and and/or endorsed by HUD/FHA; (b) control reviews performed by an Communications, National Protection and failed to timely notify HUD that AFB independent third party regarding Programs Directorate, Department of has entered into a written agreement Bogman’s compliance with applicable Homeland Security. with the Federal Reserve Board of HUD Handbooks and Mortgagee Letters, [FR Doc. 2016–11128 Filed 5–10–16; 8:45 am] Chicago on May 22, 2014 and; (c) failed including compliance with servicing BILLING CODE P to timely notify HUD that AFB had and loss mitigation requirements. entered into a consent order with the Cause: The Board took this action Federal Deposit Insurance Corporation based on the following violations of DEPARTMENT OF HOUSING AND and the State of Illinois Department of HUD/FHA requirements alleged by URBAN DEVELOPMENT Financial and Professional Regulation. HUD: Bogman (a) failed to properly [Docket No. FR–5948–N–01] 2. American Home Free Mortgage, establish and implement a Quality Prosper, TX [Docket No. 14–1682– Control Plan; (b) used the services of a Mortgagee Review Board: MR] third party servicer that was not an Administrative Actions Action: On May 21, 2015, the Board approved HUD/FHA approved voted to withdraw the FHA approval of mortgagee; (c) failed to properly service AGENCY: Office of the Assistant defaulted FHA insured loans and failed American Home Free Mortgage Secretary for Housing–Federal Housing to ensure its foreclosure management (‘‘AHFM’’) on a permanent basis. On Commissioner, HUD. review checklist was in compliance July 24, 2015, the Board entered into a ACTION: Notice. settlement agreement with AHFM that with HUD/FHA requirements; and (d) required AHFM to pay a civil money failed to use the proper loss mitigation SUMMARY: In compliance with Section techniques with borrowers. 202(c)(5) of the National Housing Act, penalty in the amount of $169,419, and to abide by the Board’s action 4. City First Mortgage Services LLC., this notice advises of the cause and concerning the permanent withdrawal Bountiful, UT [Docket No. 15– description of administrative actions of its FHA approval. 1657–MR] taken by HUD’s Mortgagee Review Cause: The Board took this action Action: On June 30, 2015, the Board Board against HUD-approved based on the following violations of issued a letter of reprimand to City First mortgagees. HUD/FHA requirements alleged by Mortgage Services, LLC., (‘‘CFMS’’), and FOR FURTHER INFORMATION CONTACT: HUD: AHFM (a) submitted false also required CFMS to pay a civil Nancy A. Murray, Secretary to the certifications to HUD/FHA in 2010, money penalty in the amount of Mortgagee Review Board, 451 Seventh 2012 and 2013 for the annual $40,500. Street SW., Room B–133/3150, recertifications of its FHA approval; (b) Cause: The Board took this action Washington, DC 20410–8000; telephone failed to ensure that individuals based on the following violations of (202) 708–2224 (this is not a toll-free originating FHA insured loans were HUD/FHA requirements alleged by number). Persons with hearing or exclusively employed by AHFM; (c) HUD: CFMS (a) failed to comply with speech impairments may access this failed to implement a Quality Control Generally Accepted Accounting number through TTY by calling the toll- Plan in compliance with HUD/FHA Principles; (b) falsely certified to HUD/ free Federal Information Service at (800) requirements; (d) failed to conduct FHA that it had complied with all HUF/ 877–8339. Quality Control reviews in accordance FHA regulations in its June 25, 2014 SUPPLEMENTARY INFORMATION: Section with HUD/FHA requirements; (e) annual certification; (c) failed to 202(c)(5) of the National Housing Act participated in a scheme to inflate the promptly notify HUD/FHA it had (12 U.S.C. 1708(c)(5)) requires that HUD amount of fees collected in loan entered into a consent order with the ‘‘publish a description of and the cause transactions by disguising them as State of Illinois Department of Financial for administrative action against a HUD- construction fees; (f) submitted loan and Professional Regulation, Division of mstockstill on DSK3G9T082PROD with NOTICES approved mortgagee’’ by the case binders that falsely identified fees Banking and paid a $2,500 fine to settle Department’s Mortgagee Review Board as construction costs or fees; (g) allegations that it allowed an unlicensed (‘‘Board’’). In compliance with the provided false certifications to HUD/ office, branch manager and loan requirements of Section 202(c)(5), this FHA regarding conflicts of interests; (h) originator to conduct business without notice advises of actions that have been allowed personnel involved in the day- the proper licenses or sponsorship from taken by the Board in its meetings from to-day origination process to conduct CFMS; and (d) failed to timely notify October 1, 2014 to September 30, 2015. Quality Control reviews; (i) allowed the HUD/FHA that it had entered into a VerDate Sep<11>2014 17:20 May 10, 2016 Jkt 238001 PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 E:\FR\FM\11MYN1.SGM 11MYN1

Federal Register / Vol. 81, No. 91 / Wednesday, May 11, 2016 / Notices 29291 settlement agreement with the State of Action: On November 10, 2014, the mortgage insurance through August 25, California. Board issued a Notice of Administrative 2014. The settlement expressly 5. Fifth Third Bank, Cincinnati, OH Action permanently withdrawing the excluded streamline refinances and [Docket No. 16–1634–MR] FHA approval of Infinity Home Home Equity Conversion Mortgage Mortgage Company, Inc., (‘‘IHMC’’). loans from the release. Action: On September 15, 2015, the Cause: The Board took this action Cause: The Board took this action in Board voted to accept a proposed based on the following violations of order to resolve allegations that MetLife settlement between the United States HUD/FHA requirements alleged by failed to properly underwrite FHA- and Fifth Third Bank (‘‘FTB’’). Pursuant HUD: IHMC (a) failed to establish and insured loans that resulted in claims to the terms of the Settlement, FTB implemented a Quality Control Plan in being submitted to FHA through August agreed to: (a) Pay a total of $85 million accordance with HUD/FHA 25, 2014. to resolve potential liability under the requirements; (b) failed to complete False Claims Act in connection with 519 10. Putnam Bank, Putnam, CT [Docket Quality Control reviews timely and No. 15–1504–MR] loans that went to claim; (b) indemnify respond to Quality Control review HUD/FHA for the life of the loan on all Action: On June 4, 2015, the Board findings reported by HUD/FHA; (c) losses associated with 920 loans; (c) entered into a settlement agreement failed to ensure it conducted early make an administrative payment with Putnam Bank, (‘‘PB’’) that required payment default Quality Control totaling $ 2,034,000; and (d) make an PB to pay a civil money penalty in the reviews in accordance with HUD/FHA administrative payment to HUD/FHA of amount of $5,000. requirements; (d) failed to ensure $441,000. Cause: The Board took this action borrowers were eligible for FHA-insured Cause: The Board took this action based on the following violation of financing; (e) failed to properly based on (a) FTB’s own self-reporting HUD/FHA requirements alleged by document the borrowers’ source/ that it had not fully complied with its HUD: PB failed to obtain, prior to adequacy of funds used for down obligation to notify HUD/FHA of early closing, documentation of the terms of payments and/or closing costs; (f) failed payment defaults in loans that a $5,000 loan from the borrower’s father to properly document the income contained significant deficiencies, and that the borrower used for the down utilized to qualify borrowers; (g) failed (b) an investigation by the U.S. payment. to resolve discrepancies and/or Attorney’s Office for the Southern conflicting information prior to 11. Residential Finance Corporation, District of New York based on a Qui submitting loans for FHA approval and Columbus, OH [Docket No. 14– Tam action. ensure outstanding judgments were 1708–MR] 6. First Liberty Financial Group, satisfied; (h) failed to ensure the Action: On April 28, 2015, the Board Louisville, KY [Docket No. 15– Uniform Residential Appraisal Report issued a Notice of Administrative 1500–MR] supported the final value conclusion Action to Residential Finance Action: On September 11, 2015, the and/or failed to ensure the health and Corporation (‘‘RFC’’) withdrawing RFC’s Board entered into a Settlement safety of the subject property; and (i) FHA approval for a period of one year. Agreement with First Liberty Financial failed to comply with HUD/FHA Cause: The Board took this action Group, (‘‘FLFG’’) that required FLFG to documentation requirements. based on the following violations of pay a civil money penalty in the amount 8. Integrity Home Loans of Central HUD/FHA requirements alleged by of $66,700 without admitting fault or Florida, Lake Mary, FL [Docket No. HUD: RFC (a) failed to ensure the liability. 14–1727–MR] borrower made the minimum required Cause: The Board took this action Action: On March 19, 2015, the Board investment; (b) failed to document a based on the following violations of voted to withdraw the FHA approval of borrower’s funds to close on a loan; (c) HUD/FHA requirements alleged by Integrity Home Loans of Central Florida, failed to resolve questions concerning a HUD: FLFG (a) failed to establish and (‘‘IHL’’) for a period of one year. On May borrower’s delinquent federal debt; and implemented a Quality Control Plan in 18, 2015, the Board entered into a (d) failed to properly calculate a accordance with HUD/FHA settlement agreement with IHL that borrower’s income used to qualify the requirements; (b) failed to ensure it required IHL to pay a civil money borrower. conducted reviews of loans which went penalty in the amount of $3,000 and 12. Reverse Mortgage Solutions, Inc., into default within the first six months abide by the Board’s withdrawal of Spring, TX [Docket No. 16–1632– of repayment; (c) failed to evidence that IHL’s FHA approval. MR] it had conducted a pre-insurance review Cause: The Board took this action Action: On May 21, 2015, the Board for loans insured under the Lender based on the following violation of voted to accept a settlement agreement Insurance Program; (d) failed to comply HUD/FHA requirements alleged by between Walter Investment with HUD/FHA rules, regulations and HUD: IHL operated a branch office in Management Corporation and its guidelines in originating and violation of HUD/FHA requirements. subsidiary Reverse Mortgage Solutions, underwriting FHA insured loans; (e) 9. MetLife Bank, N.A., Morristown, NJ Inc. (‘‘RMSI’’) and the United States that failed to sign the certification on page 4 [Docket No.16–1631–MR] required RMSI to pay the United States of the final HUD form 92900–A for 26 Action: On February 24, 2015, the the amount of $26,250,000.00. Pursuant loans; (f) failed to comply with HUD/ Board voted to accept the terms of a to the terms of the settlement, the Board FHA documentation requirements for settlement agreement between the settled potential administrative actions the borrowers’ source of funds for one United States of America, (‘‘USA’’) and by the Board against RMSI in mstockstill on DSK3G9T082PROD with NOTICES loan; (g) failed to timely remit Mortgage MetLife Bank, N.A., (‘‘MLB’’) that connection with insurance claims filed Insurance Premiums as required by required MLB to pay $123,500,000 to from August 13, 2009 to December 15, HUD/FHA; and (h) failed to notify HUD/ the USA. As part of the settlement, the 2014 for loans insured under the Home FHA of a business change. Board released MLH from liability for Equity Conversion (‘‘HECM’’) Program. 7. Infinity Home Mortgage Company, any civil money penalty due to Cause: The Board took this action Inc. Cherry Hill, NJ [Docket No. 14– improper origination of FHA-insured based on a complaint filed under the 1641–MR] loans for which FHA paid a claim for False Claims Act that alleged that RMSI VerDate Sep<11>2014 17:20 May 10, 2016 Jkt 238001 PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 E:\FR\FM\11MYN1.SGM 11MYN1

29292 Federal Register / Vol. 81, No. 91 / Wednesday, May 11, 2016 / Notices had failed to self-curtail debenture 5. City National of New Jersey, Newark, 12. Franklin Credit Management interest with respect to HECM claims NJ ($3,500) [Docket No.15–1624– Corporation, Jersey City, NJ [Docket that were filed with HUD, and that a MRT] No.14–1702–MRT] subsidiary of RMSI acted as the real 6. Darien Rowayton Bank, Darien, CT 13. Funding Source, LLC., Syracuse, NY estate agent for the disposition of the ($3,500) [Docket No.15–1603–MRT] [Docket No.15–1771–MRT] HECM properties after foreclosure, 7. First Key Mortgage, LLC, Rye Brooke, 14. GMS Funding LLC., West Columbia, which resulted in the payment of NY ($3,500) [Docket No.14–1706– SC [Docket No.15–1722–MRT] commissions in violation of the anti- MRT] 15. Golden Pacific Bank, Sacramento, referral fee prohibitions of the Real 8. Lone Star National Bank, McAllen, CA [Docket No.15–1773–MRT] Estate Settlement Procedures Act. TX ($3,500) [Docket No.14–1569– 16. Guardian Credit Union, West Allis, MRT] WI [Docket No.15–1634–MRT] 13. Sahara Mortgage Corporation, Las 9. Members Cooperative Credit Union, Vegas, NV [Docket No. 15–1502– 17. Homefirst Mortgage LLC., Jackson, Cloquet, MN ($3,500) [Docket MS [Docket No.15–1522–MRT] MR] No.15–1600–MRT] 18. Jayco Capital Group, Inc., Irvine, CA Action: On March 30, 2015, the Board 10. Northland Financial, Steele, ND [Docket No.15–1775–MRT] issued a Notice of Administrative ($3,500) [Docket No.15–1614–MRT] 19. Landmark Bank NA, Columbia, MO Action withdrawing the FHA approval 11. Prairie Bank of Kansas fka Farmers [Docket No.14–1551–MRT] of Sahara Mortgage Corporation, National Bank, Stafford, KS ($3,500) 20. Liberty Capital Financial, Damascus, (‘‘SMC’’) for a period of one year. [Docket No.14–1661–MRT] MD [Docket No.15–1776–MRT] Cause: The Board took this action 12. Urban Fulfillment Services, LLC 21. Merchants & Planters Bank, Boilvar, based on the following violations of f/k/a Prodovis Mortgage, LLC, TN [Docket No.15–1777–MRT] HUD/FHA requirements alleged by Broomfield, CO ($3,500) [Docket 22. Mortgage Bank of California, HUD: SMC failed to pay HUD in No.13–1482–MRT] 13. Progressive Bank, Monroe, LA Manhattan Beach, CA [Docket accordance with SMC’s indemnification No.15–1778–MRT] agreements with HUD/FHA. ($3,500) [Docket No.15–1591–MRT] 14. Teamsters Credit Union, Detroit, MI 23. Prime Bank, Edmond, OK [Docket 14. USLending & Finance, LTD, No.15–1621–MRT] ($3,500) [Docket No.15–1612–MRT] Downers Grove, IL [Docket No. 15– 15. Valley Exchange Bank of Lennox, 24. Retreat Capital Management Inc., 1505–MR] Lennox, SD ($3,500) [Docket No.15– Irving, TX [Docket No.15–1779– Action: On July 1, 2015, the Board 1606–MRT] MRT] entered into an agreement with 25. Rocky Mountain Bank, Jackson, WY USLending &Finance, LTD III. Lenders That Failed To Meet [Docket No.15–1780–MRT] (‘‘USLending’’) that required USLending Requirements for Annual 26. South Valley Bank and Trust, to pay $18,500 without admitting fault Recertification of HUD/FHA Approval Klamath Falls, OR [Docket No.15– or liability. Action: The Board voted to withdraw 1651–MRT] Cause: The Board took this action the FHA approval of each of the lenders 27. Spectra Funding Inc., Carlsbad, CA based on the following violations of listed below for a period of one (1) year. [Docket No.15–1782–MRT] HUD/FHA requirements alleged by Cause: The Board took this action 28. StellarOne Bank, Christianburg, VA HUD: USLending (a) failed to provide based upon allegations that the lenders [Docket No.15–1783–MRT] documentation it had implemented a listed below were not in compliance 29. Steward Investments, Inc., Carlsbad, Quality Control Plan in accordance with with the Department’s annual CA [Docket No.15–1784–MRT] HUD/FHA requirements; and (b) failed recertification requirements. 30. The Cadle Company, Newton Falls, to ensure its officers and employees 1. Acadia Federal Savings Bank, Falls OH [Docket No.14–1648–MRT] were exclusively employed by Church, VA [Docket No.15–1754– 31. The Lending Company Inc., USLending. MRT] Phoenix, AZ [Docket No.15–1787– 2. Approved Home Lending, Inc., Miami MRT] II. Lenders That Failed To Timely Meet FL [Docket No.15–1509–MRT] 32. Washington Savings Association, Requirements for Annual 3. Blufi Lending Corporation, San Diego, Philadelphia, PA [Docket No.15– Recertification of HUD/FHA Approval CA [Docket No.15–1757–MRT] 1789–MRT] Action: The Board entered into 4. Central State Bank., Quincy, IL 33. Workers Credit Union, Fitchburg, settlement agreements with the lenders [Docket No.15–1759–MRT] MA [Docket No.15–1510–MRT] listed below, which required the lender 5. Classic Home Financial, Inc., Date: May 3, 2016. to pay a civil money penalty without Houston, TX [Docket No.15–1762– MRT] Edward L. Golding, admitting fault or liability. Principal Deputy Assistant Secretary, Cause: The Board took this action 6. Connecticut River Bank., Charlestown, NH [Docket No.15– Chairman, Mortgagee Review Board. based upon allegations that the lenders [FR Doc. 2016–11045 Filed 5–10–16; 8:45 am] listed below failed to comply with the 1764–MRT] 7. Consumers Mortgage Corp, BILLING CODE 4210–67–P Department’s annual recertification Middletown, NJ [Docket No.15– requirements in a timely manner. 1765–MRT] 1. BCB Community Bank, Bayonne, NJ 8. Denver Mortgage Company, DEPARTMENT OF HOUSING AND ($16,000) [Docket No.15–1666– Greenwood Village, CO [Docket URBAN DEVELOPMENT MRT] mstockstill on DSK3G9T082PROD with NOTICES No.15–1766–MRT] [Docket No. FR–5909–N–35] 2. Bondcorp Realty Services, Inc., 9. Dominion Residential Mortgage, LLC., Newport Beach, CA ($4,250) Fairfax, VA [Docket No.15–1767– 30-Day Notice of Proposed Information [Docket No.15–1859 MRT] MRT] Collection: Home Equity Conversion 3. Case Credit Union, Lansing, MI 10. First Mutual Corporation, Cherry Mortgage Client Session Evaluation ($3,500) [Docket No.15–1608–MRT] Hill, NJ [Docket No.13–1768–MRT] 4. Citizens Trust Bank, Atlanta, GA 11. Firstrust Mortgage, Inc., Overland AGENCY: Office of the Chief Information ($3,500) [Docket No.15–1760–MRT] Park, KS [Docket No.15–1627–MRT] Officer, HUD. VerDate Sep<11>2014 17:20 May 10, 2016 Jkt 238001 PO 00000 Frm 00044 Fmt 4703 Sfmt 4703 E:\FR\FM\11MYN1.SGM 11MYN1


Document Created: 2016-05-11 01:11:30
Document Modified: 2016-05-11 01:11:30
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesMay 3, 2016. Edward L. Golding, Principal Deputy Assistant Secretary, Chairman, Mortgagee Review Board. [FR Doc. 2016-11045 Filed 5-10-16; 8:45 am]
ContactNancy A. Murray, Secretary to the Mortgagee Review Board, 451 Seventh Street SW., Room B-133/3150, Washington, DC 20410-8000; telephone (202) 708-2224 (this is not a toll-free number). Persons with hearing or speech impairments may access this number through TTY by calling the toll-free Federal Information Service at (800) 877-8339.
FR Citation81 FR 29290 
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