The Department of Housing and Urban Development's Mortgagee Review Board is imposing civil money penalties totaling $27,000 on two Federal Housing Administration-approved lenders in Wisconsin and Connecticut for a variety of violations of FHA lending and marketing standards.
In the first action, HUD imposed $20,000 in penalties against 1st Rate Mortgage Corp. of Green Bay, Wis., for allegedly violating third party origination restrictions, making false certifications concerning the compliance with these restrictions and failing to maintain a quality control plan in accordance with HUD and FHA requirements.
In the second action, HUD imposed $7,000 in penalties against Access Mortgage Corp., charging that the New Haven company violated department requirements by improperly using the official FHA logo and failing to notify HUD of a change in its "doing business as" name.
Each lender, neither of which responded to requests for comment, will have an opportunity to challenge the imposition of civil money penalties and seek a hearing before an administrative law judge.
In addition, HUD reached tentative settlements with four other lenders — Nations Direct Mortgage in Irvine, Calif., VanDyk Mortgage Corp. of Grand Rapids, U.S Bancorp in Minneapolis and Sun West Mortgage Co. of Cerritos, Calif.
The agency also issued a letter of reprimand to Community Lender Inc. of Boise, Idaho, for allegedly violating HUD regulations.
All the actions were announced last week.