The Federal Housing Administration (FHA) has announced that it is immediately suspending Equitable Trust Mortgage Corporation (ETM) of Baltimore, Md., thereby preventing the company from originating and underwriting new FHA-insured mortgages. FHA is imposing this action because ETM improperly overcharged 37 borrowers for broker and loan origination fees in excess of what the U.S. Department of Housing & Urban Development (HUD) currently allows.Read more

Less then a day after the Federal Housing Administration (FHA) withdrew FHA approval of Ideal Mortgage Bankers, doing business as Lend America and Lending Key (Ideal), Lend America has announced via its Web site that it has ceased its loan origination and operations. In addition to the action taken by the FHA against Lend America, the Government National Mortgage Association (Ginnie Mae) yesterday defaulted the company. Reports say the company is currently in the process of laying off a majority of its 600-member workforce.Read more

The U.S. Department of Housing & Urban Development (HUD) has announced that its Mortgagee Review Board (MRB) is imposing civil monetary penalties totaling $27,000 on two FHA-approved lenders in Wisconsin and Connecticut for a variety of violations of FHA lending and marketing standards. In addition, the MRB reached tentative settlements with four other lenders and issued two Letters of Reprimand to lenders that HUD alleged violated FHA requirements. “There should be no doubt about the message we’re sending to our lenders,” said FHA Commissioner David Stevens.Read more

The U.S. Department of Housing & Urban Development (HUD) announced that its Mortgagee Review Board (MRB) is proposing to permanently withdraw the HUD/FHA approval of Financial Mortgage USA Inc., a Home Equity Conversion Mortgage (HECM or reverse mortgage) lender based in Honolulu, Hawaii.Read more