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67 Mortgage Lenders Failed To Meet Criteria For FHA Recertification

It may feel as though every mortgage lender in America is offering FHA loans.

The Department of Housing and Urban Development's (HUD) Mortgagee Review Board from July 10, 2008 to August 4, 2009, reveals nearly 200 mortgage companies settled actions, paid civil money penalties, had their FHA approvals revoked or not renewed, were suspended, or put on probation.

The last action by the Mortgagee Review Board occurred on August 4, when Taylor, Bean and Whitaker Mortgage Corporation, of Ocala, FL, had its FHA approval to originate and underwrite loans suspended pending completion of an investigation by HUD's inspector general.

(Shutting down Taylor, Bean and Whitaker Mortgage Corporation has resulted in hundreds of thousands of homeowners being dumped into a mortgage hell that still hasn't been completely unraveled, including bounced checks from Taylor, Bean and Whitaker, unpaid real estate property taxes and insurance premiums from now missing or unaccounted for escrow accounts, confusing or wrong information from lenders who took over these Taylor, Bean and Whitaker loans and a general screw up that has caused borrowers to have a massive headache.)

Read a little further down and you'll see that 67 mortgage lenders failed to meet criteria for FHA recertification and had their FHA approval status yanked for one year. HUD's Mortgagee Review Board "took this action based upon allegation that the lenders were not in compliance with the Department's annual recertification requirements."

If you're thinking about getting an FHA loan, it won't be with the following lenders:

  • 1st Point Lending LLC, Milwaukee, WI
  • Aadus Banc Corp., Palatine, IL
  • AccessAmerica Mortgage LLC, Duluth, GA
  • Advantage Home Finance, Pacifica, CA
  • Advent Mortgage LLC, Cranford, NJ
  • Affordable Mortgage Company, Waterford, CT
  • Aggressive Mortgage Corp., Richmond, VA
  • Alaska State Mortgage Inc., Anchorage, AK
  • American Home Mortgage Corp., Melville, NY
  • American Mortgage Lending Services, Inc., Chicago, IL
  • American Residential Mortgage LP, Saint Paul, MN
  • Arrow Service Corp., Inc., Morrison, CO
  • Aurora Financial Services, Inc., New Orleans, LA
  • Bayside Financial Group, Inc., Annapolis, MD
  • BBCP Holdings, Ltd., North Palm Beach, FL
  • BH Mortgage Partners LLC, Suwanee, GA
  • Citizens Trust Financial Group, Inc., Cockeysville, MD
  • Continental Financial Group, Inc., Houma, LA
  • Cosmopolitan Mortgage, Inc., Orange, NJ
  • Cresland Mortgage Company LLC, Plymouth, MN
  • Dove Capital Corporation, Corona, CA
  • Eclipse Mortgage, LLC, Lombard, IL
  • Equity Financial, Inc., East Brunswick, NJ
  • Executive World Corp., d/b/a Executive Mortgage, Montebello, CA
  • Evolution Funding Inc., Wellington, FL
  • Fallon County Federal Credit Union, Baker, MT
  • Financial Capital, Inc., Redding, CA
  • First Capital Group, LP, Irvine, CA
  • First Fidelity Mortgage, Inc., Cranford, NJ
  • First Independent Mortgage LLC, Burlington, MA
  • First Magnus Financial Corp., Tucson, AZ
  • First National Bank and Trust, Beatrice, NE
  • Genesis Mortgage Services, Inc., Lutz, FL
  • Godwin Mortgage Group, Inc., Louisville, KY
  • Great American Mortgage Services Corp., Hamilton Square, NJ
  • Greenbrier Mortgage LLC, Charlotte, NC
  • Home Source Lending Group LLC, Alpharetta, GA
  • Hunter Partners, Inc., Bakersfield, CA
  • Investors Mortgage Lending, Orlando, FL
  • Lebanon Valley Farmers Bank, Lebanon, PA
  • Lendia LLC, Marlborough, MA
  • Main Street Bank and Trust, Champaign, IL
  • Mid America Bank FSB, Downers Grove, IL
  • Midtowne Mortgage, Inc., Midvale, UT
  • Midwest Residential Lending LLC, Tipp City, OH
  • Millennium Capital Mortgage Co., Longwood, FL
  • Moneyfirst Financial, Inc., Dallas, TX
  • NCW Community Bank, Wenatchee, WA
  • Nuestra Casa Mortgage, Inc., Santa Ana, CA
  • Phelan Financial Services, Inc., Phelan, CA
  • Premier Mortgage Funding, Inc., Clearwater, FL
  • Premier Mortgage Group, Inc., Lexington, KY
  • Prestige Capital Funding, Inc., Littleton, CO
  • Prime Financial Corporation, Berwyn, IL
  • Professional Mtg Serv of Central Florida, Inc., Orlando, FL
  • TCSB Mortgage Company, Traverse City, MI
  • The First National Bank & Trust, Beatrice, NE
  • The Mortgage House, Inc., Hialeah, FL
  • Traders National Bank-Tullahoma, Tullahoma, TN
  • Trinity Wealth Mortgage Corp., Lincoln, CA
  • Truepointe Mortgage, Layton, UT
  • UMS LLC, Paramus, NJ
  • Velocity Lending LLC, Clark, NJ
  • Wes Holding Corporation, Charlotte, NC
  • West Michigan Finance, Inc., Portage, MI
  • Wow Financial LLC, Conshohocken, PA
Another 41 lenders had to pay a $3,500 penalty for failing to comply with the recertification process with FHA in a "timely manner." And 104 lenders complied, but apparently were late in doing so. They had to pay a $1,000 administrative fee.

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Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and the upcoming Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com.
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