January 26, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) announced that it is terminating Origination Agreements with 15 lenders due to higher than normal default rates on loans endorsed by the Mortgagees. Reinstatement is possible if the affected branch or branches have been terminated for at least six months and the lender continues to be an approved mortgagee.
Under the Agreement, the mortgagee is authorized to originate single-family mortgage loans and submit them to FHA for insurance endorsement. The Agreement may be terminated on the basis of poor performance of FHA-insured mortgage loans originated by the mortgagee.
Regulations under the agreement permit HUD to terminate the Agreement with any mortgagee having a default and claim rate for loans endorsed within the preceding 24 months that exceeds 200 percent of the default and claim rate within the geographic area served by a HUD field office, and also exceeds the national default and claim rate.
Below is a list of the affected mortgagees:
|Mortgagee Name||Mortgagee Branch Office|
|Access Mortgage Services Inc||Woodbridge, NJ|
|Anchor Mortgage||Las Vegas, NV|
|Benefit Funding Corp||Beltsville, MD|
|Birmingham Bancorp Mortgage Corp||West Bloomfield, MI|
|Dedicated Mortgage Associates LLC||Hudson, NH|
|Equitable Trust Mortgage Corp||Baltimore, MD|
|Equity Source Home Loans LLC||Lakewood, NJ and Morganville, NJ|
|First Performance Mortgage Corp||Bessemer, AL|
|Freedom Mortgage Corp||Fishers, IN|
|Homeland Lending Inc||Plant City, FL|
|Metro Finance Corp||Aurora, IL|
|Moncor Inc||Wheat Ridge, CO|
|MVB Mortgage Corp||Southfield, MI|
|Signature One Mortgage Inc||Las Vegas, NV|
|Valor Financial Services LLC||Rolling Meadows, IL|
Tags: HUD, mortgage originators, mortgages, single-family mortgage loans, FHA insured mortgage loans, loan defaults