FHA Cleans House as It Enters 2011: Nearly 250 Lenders Fined or Suspended for Non-Compliance
As 2010 winds down and 2011 is upon us, the Federal Housing Administration (FHA) and Commissioner David H. Stevens has announced a number of actions toward mortgage lenders nationwide for a variety of non-FHA-compliant offenses. The FHA announced a number of settlements with mortgage lending companies nationwide through settlement agreements, civil monetary penalties, the withdrawal of FHA approval, suspensions, probations, reprimands and administrative payments in 2010. Of these 27 lenders, 11 had their FHA approval revoked, 17 companies received civil penalties totaling $554,000 and one company was forced to make an administrative payment to the FHA for employment violations. Two companies received both a civil penalty in addition to having their their FHA approval denied. FHA took aim at 127 lenders who failed to meet the annual requirements for U.S. Department of Housing & Urban Development (HUD) recertification and FHA approval. The 127 non-compliant companies each received revocation of their FHA approval for a total of one year. Eighty-eight total companies were found in violation of FHA guidelines, however, were fined and have been found in compliance. Each of these companies were levied a civil penalty of either $1,000, $3,500 or $7,000, and have since been restored into compliance by the FHA and HUD. The Mortgagee Review Board (MRB) took action against a total of 1,640 approved FHA lenders in 2010, the largest number ever in a single year. The second highest number of lenders sanctioned by the MRB is 593, which occurred in 2009. To view the list of companies and to view the full text of Federal Register/Vol. 75, No. 247, click here. For more information, visit www.fha.gov.