WASHINGTON - Secretary Andrew Cuomo said Tuesday that the Department of Housing and Urban Development has sanctioned 77 lenders for violations of FHA program rules.

The agency kicked 15 lenders out of the program and is considering similar treatment for four others that were not named. Penalties imposed on the other lenders included fines and mandatory restructuring of some mortgages backed by the federal guarantee program.

"These sanctions clearly demonstrate that we meant business when we said we had zero tolerance for fraud, waste, and abuse," Mr. Cuomo said in statement. "Bad lenders beware. If you try to defraud the consumer, or HUD, or don't follow the rules, we will come after you."

Island Mortgage was among the lenders whose FHA lending authority was withdrawn. Island is the bricks-and-mortar subsidiary of the embattled AppOnline.com of Melville, N.Y., which has been the focus of a New York Banking Department investigation and several lawsuits nationwide for canceled checks that were supposed to fund loans the company wrote.

Others removed from the program were Allstate Mortgage Co. of Norwalk, Calif.; Charter Mortgage Corp. of Fort Lauderdale, Fla.; and Rockwell Equities of Jericho, N.Y.

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