HUD Suspends Seckel Capital From FHA Program

HUD Suspends Seckel Capital From FHA Program

July 12, 2017
Swiss-based bank UBS’ announcement that the Department of Justice (DOJ) was preparing a civil action related to 40 residential mortgage-backed securities (RMBS) deals from 2006 through 2007 came to fruition sooner than later
The Mortgagee Review Board within the Department of Housing and Urban Development (HUD) has issued a suspension at Seckel Capital LLC that prohibits the Newtown, Pa.-based lender from originating and underwriting new mortgages insured by the Federal Housing Administration (FHA). HUD's Departmental Enforcement Center also suspended company owner John Seckel from doing business with the federal government.
HUD charged Seckel with intentionally submitting financial statements to the government that fraudulently certified they were audited by an independent accounting firm. HUD added that Seckel and his company “engaged in a years-long pattern of submitting false financial statement to FHA, representing them as properly audited by independent certified public accountants.”
HUD did not state how long the suspension would remain in place. Seckel and his company offered no public comment on the HUD ruling.