Happy New Year: HUD Suspends or Fines Nearly 250 Lenders

January 1 2011 (Chris Moore)
busted_image
In compliance with the National Housing Act, the Office of the Assistant Secretary for Housing—Federal Housing Commissioner, Department of Housing and Urban Development (HUD) revealed the names and the actions towards nearly 250 mortgage lenders nationwide that had been in violation of HUD and Federal Housing Authority (FHA) guidelines.

The FHA took aim at 127 lenders who failed to meet the annual requirements for U.S. Department of Housing & Urban Development (HUD) re-certification 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 who were found in violation of FHA guidelines, however, were fined and have been found in compliance. Each of these companies was levied civil penalties of $1,000, $3,500 or $7,000, depending on the severity of the violation, and has since been restored into compliance by the FHA and HUD.

Twenty-eight companies with more severe violations reached settlement agreements with the FHA including civil monetary penalties, the withdrawal of FHA approval, suspensions, probations, reprimands and administrative payments. Eleven of the companies had their FHA approval revoked, seventeen companies received civil penalties totaling $554,000, and one company made an administrative payment to the FHA for employment violations.

For a complete list of all violators and violations, click here.

Tags: HUD, FHA, mortgage lenders, guideline violations, mortgage companies, penalties, violations