Skip to main content

FHA Cleans House as It Enters 2011: Nearly 250 Lenders Fined or Suspended for Non-Compliance

NationalMortgageProfessional.com
Dec 31, 2010

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.
Published
Dec 31, 2010
L.A.-Area Broker To Serve Time For Defrauding Lenders

Alex Ashod Dadourian convicted on 91 counts for $8 million in mortgage fraud.

Regulation and Compliance
Dec 08, 2022
Ginnie Mae Has Doubled The Proportion Of VA Loans In Its Portfolio

In report to Congress, agency says VA loans have risen to 45% of its MBS portfolio over 10 years.

Regulation and Compliance
Dec 08, 2022
Fannie Mae Updates Underwriting To Help 'Credit Invisible' Borrowers

Enhancement to Desktop Underwriter system intended to support loans when borrower has no credit score.

Regulation and Compliance
Dec 06, 2022
MBA Offers Suggestions For Improving Refis, Forbearance

Responds to CFPB's request for information published in September.

Regulation and Compliance
Nov 30, 2022
2023 Conforming Loan Limit Tops $1M For High-Cost Areas

FHFA said the baseline conforming loan limit will increase 12% next year.

Regulation and Compliance
Nov 29, 2022
FHA Extends Waivers To Its HECM Loss-Mitigation Policies 

Extension applies to senior borrowers affected by COVID-19.

Regulation and Compliance
Nov 28, 2022