FHA Terminates Agreements With 15 Originators
|January 27, 2011
The Federal Housing Administration terminated agreements with 15 originators and seven underwriters approved for mortgage insurance from the Department of Housing and Urban Development, according to a recent Federal Register.
HUD can relinquish federal backing to mortgagees that have a default and claim rate exceeding both the national average and 200 percent of the average default and claim rate in the pertinent geographic area. HUD also can terminate underwriters under the same criteria, however, the default and claim rate must be above 250 percent of the geographic average.
The FHA pulled HUD approval from the following mortgage companies:
- Access Mortgage Services Inc. of Woodbridge, N.J.
- Equity Source Home Loans of Lakewood and Morganville, N.J.
- Valor Financial Services of Rolling Meadows, Ill.
- Metro Finance Corp. of Aurora, Ill.
- Benefit Funding Corp. of Beltsville, Md.
- Equitable Trust Mortgage Corp. of Baltimore
- Birmingham Bancorp Mortgage Corp. of West Bloomberg, Mich.
- MVB Mortgage Corp. of Southfield, Mich.
- Moncor Inc. of Wheat Ridge, Colo.
- Homeland Lending Inc. of Plant City, Fla.
- Freedom Mortgage Corp. of Fishers, Ind.
- Dedicated Mortgage Associates of Hudson, N.H.
- Anchor Mortgage of Las Vegas
- Signature One Mortgage of Las Vegas
- First Performance Mortgage Corp. of Bessemer, Ala.
Birmingham Bancorp Mortgage Corp. and MVB Mortgage Corp. also had their direct endorsement approval revoked. Other underwriters who had their direct endorsement approvals revoked include CMG Mortgage Inc. (San Ramon, Calif.), NTFN Inc. (Plano, Texas), Pine State Mortgage Corp. (Atlanta), Popular Mortgage Corp. (Hialeah, Fla.), and Universal Mortgage Corp. (Mequon, Wis.). Universal was terminated in both the Indianapolis and Chicago jurisdictions under HUD.