9360 Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices 

A. Overview of Information Collection 

Title of Information Collection: 

Performing Loan Servicing for the Home 

Equity Conversion Mortgage (HECM). 

OMB Approval Number: 2502–0611. 

Type of Request: Extension. 

Form Numbers: HUD–27011, HUD– 

50002, HUD–50012. 

Description of the need for the 

information and proposed use: This 

information request is a comprehensive 

collection of requirements for 

mortgagees that service HECM 

mortgages and the HECM borrowers, 

who are involved with servicing-related 

activities that includes collection and 

payment of mortgage insurance 

premiums, escrow account 

administration, providing loan 

information and customer service. 

Respondents: Individuals or 

households and Servicers of HECM 

Mortgagees. 

Estimated Number of Respondents: 

10. 

Estimated Number of Responses: 

21,345,312. 

Frequency of Response: On occasion. 

Average Hours per Response: 0.07 (4 

minutes). 

Total Estimated Burdens: 1,451,562. 

B. Solicitation of Public Comment 

This notice is soliciting comments 

from members of the public and affected 

parties concerning the collection of 

information described in Section A on 

the following: 

(1) Whether the proposed collection 

of information is necessary for the 

proper performance of the functions of 

the agency, including whether the 

information will have practical utility; 

(2) The accuracy of the agency’s 

estimate of the burden of the proposed 

collection of information; (3) Ways to 

enhance the quality, utility, and clarity 

of the information to be collected; and 

(4) Ways to minimize the burden of the 

collection of information on those who 

are to respond; including through the 

use of appropriate automated collection 

techniques or other forms of information 

technology, e.g., permitting electronic 

submission of responses. 

HUD encourages interested parties to 

submit comments in response to these 

questions. 

C. Authority 

Section 2 of the Paperwork Reduction 

Act of 1995, 44 U.S.C. 3507. 

Assistant Secretary for Housing— 

Federal Housing Commissioner, Janet 

M. Golrick, having reviewed and 

approved this document, is delegating 

the authority to electronically sign this 

document to submitter, Nacheshia Foxx, 

who is the Federal Register Liaison for 

HUD, for purposes of publication in the 

Federal Register. 

Nacheshia Foxx, 

Federal Register Liaison for Department of 

Housing and Urban Development. 

[FR Doc. 2021–02852 Filed 2–11–21; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–6246–N–01] 

Mortgagee Review Board: 

Administrative Actions 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Notice. 

SUMMARY: In compliance with Section 

202(c)(5) of the National Housing Act, 

this notice advises of the cause and 

description of administrative actions 

taken by HUD’s Mortgagee Review 

Board against HUD-approved 

mortgagees. 

FOR FURTHER INFORMATION CONTACT: 

Nancy A. Murray, Secretary to the 

Mortgagee Review Board, 451 Seventh 

Street SW, Room B–133/3150, 

Washington, DC 20410–8000; telephone 

(202) 402–2701 (this is not a toll-free 

number). Persons with hearing or 

speech impairments may access this 

number through TTY by calling the tollfree Federal Information Service at (800) 

877–8339. 

SUPPLEMENTARY INFORMATION: Section 

202(c)(5) of the National Housing Act 

(12 U.S.C. 1708(c)(5)) requires that HUD 

‘‘publish a description of and the cause 

for administrative action against a HUDapproved mortgagee’’ by HUD’s 

Mortgagee Review Board (‘‘Board’’). In 

compliance with the requirements of 

Section 202(c)(5), this notice advises of 

actions that have been taken by the 

Board in its meetings from the 

beginning of the FY 20 fiscal year, 

October 1, 2019, through September 30, 

2020 where settlement agreements have 

been reached or notices of 

administrative actions (withdrawals) 

have been issued. 

I. Civil Money Penalties, Withdrawals 

of FHA Approval, Suspensions, 

Probations, and Reprimands 

1. 1st Financial Inc., Millersville, MD 

[Docket No. 19–2038–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with 1st Financial Inc. (‘‘1st 

Financial’’) that included a civil money 

penalty of $14,819. The settlement did 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 1st 

Financial (a) failed to notify HUD of a 

state sanction during fiscal year 2018; 

and (b) submitted a false certification to 

HUD concerning 1st Financial’s fiscal 

year 2018. The settlement does not 

constitute an admission of liability or 

fault. 

2. A1 Mortgage Group LLC, Lees 

Summit, MO [Docket No. 18–1908–MR] 

Action: On June 26, 2019, the Board 

voted to withdraw the FHA approval of 

A1 Mortgage Group LLC (‘‘A1 

Mortgage’’) for a period of one year. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: A1 

Mortgage (a) failed to maintain the 

minimum required adjusted net worth 

in fiscal year 2017; and (b) submitted a 

false certification to HUD concerning A1 

Mortgage’s fiscal year 2017. 

3. Access Capital Funding, LLC, 

Chesterfield, MO [Docket No. 19–2050– 

MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Access Capital Funding, 

LLC (‘‘Access Capital’’) that included a 

civil money penalty of $5,000. The 

settlement did not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Access Capital 

failed to maintain the minimum 

required adjusted net worth in fiscal 

year 2018. 

4. Acre Mortgage & Financial Inc., 

Marlton, NJ [Docket No. 19–1951–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Acre Mortgage & 

Financial Inc. (‘‘Acre Mortgage’’) that 

included a civil money penalty of 

$32,123 and the indemnification of two 

FHA-insured loans that had not yet 

resulted in an insurance claim with one 

for a period of five years and the second 

for the life of the loan. The settlement 

does not constitute an admission of 

liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: Acre 

Mortgage (a) failed to ensure HUD’s new 

construction requirements were met; (b) 

failed to ensure that HUD’s selfemployment income requirements were 

met; (c) failed to maintain the minimum 

required adjusted net worth in fiscal 

Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices 9361 

year 2018; (d) failed to timely report the 

failure to maintain the required 

minimum adjusted net worth in fiscal 

year 2018; (e) failed to report an 

operating loss exceeding 20% of its net 

worth in fiscal year 2018; and (f) failed 

to file quarterly financial statements 

after an operating loss exceeding 20% of 

its net worth in fiscal year 2018. 

5. American Nationwide Mortgage 

Company, Inc., Tampa, FL [Docket No. 

20–2012–MR] 

Action: On September 1, 2020, the 

Board voted to enter into a settlement 

agreement with American Nationwide 

Mortgage Company, Inc. (‘‘American 

Nationwide’’) that included a civil 

money penalty of $19,468. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

American Nationwide (a) failed to notify 

HUD of sanctions in fiscal years 2016, 

2018, and 2019; and (b) submitted false 

certifications to HUD concerning 

American Nationwide’s fiscal years 

2016 and 2018. 

6. Aspire Lending, Dallas, TX [Docket 

No. 19–2051–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Aspire Lending 

(‘‘Aspire’’) that included a civil money 

penalty of $5,000. The settlement does 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Aspire failed to 

maintain the minimum required 

adjusted net worth during fiscal year 

2018. 

7. Atlantic Pacific Mortgage 

Corporation, Mount Laurel, NJ [Docket 

No. 19–1950–MR] 

Action: On December 17, 2019, the 

Board voted to withdraw the FHA 

approval of Atlantic Pacific Mortgage 

Corporation (‘‘Atlantic Pacific’’) for a 

period of three years and to file a 

complaint for $99,000 in civil money 

penalties. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Atlantic Pacific (a) failed to timely 

submit acceptable audited financial 

statement(s) and supplementary reports 

concerning fiscal year 2018; (b) failed to 

properly calculate the borrowers’ debts 

for three FHA-insured loans; (c) failed to 

properly calculate the borrowers’ 

income for three FHA-insured loans; (d) 

failed to properly document the source/ 

adequacy of funds used for the down 

payment or closing costs for one FHAinsured loan; (e) failed to properly 

document acceptable credit history for 

one FHA-insured loan; and (f) failed to 

ensure the property met HUD’s 

minimum property requirements for two 

FHA-insured loans. 

8. Banc of California, NA dba Banc 

Home Loans, Santa Ana, CA [Docket 

No. 18–1855–MR] 

Action: On July 16, 2020, the Board 

voted to enter into a settlement 

agreement with Banc of California that 

included a civil money penalty of 

$350,000, the refund to borrowers of 

improperly assessed fees, the 

submission of its Quality Control Plan 

for HUD’s review and approval, and the 

indemnification of FHA-insured loans 

that had not yet resulted in an insurance 

claim, ten for a term of five years and 

fourteen for the life of the respective 

loan. The settlement does not constitute 

an admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: Banc of 

California (a) maintained a Quality 

Control Plan that failed to meet HUD’s 

requirements; (b) failed to properly 

document gift funds; (c) failed to 

accurately calculate, analyze and 

document borrower income; (d) failed to 

properly document loan binders; (e) 

charged borrowers unallowable or 

excessive fees; (f) endorsed loans late 

without the required lender 

certifications; (g) failed to reconcile 

discrepancies between loan files and 

data in FHA Connection; (h) maintained 

case binders with missing, unsigned, or 

inaccurate Closing Disclosures, HUD–1 

Settlement Statements, Settlement 

Certificates and Addenda to the HUD– 

1; (i) failed to obtain satisfactory 

mortgage or rental verification; (j) failed 

to document verification of borrowers 

against CAIVRS, the Limited Denial of 

Participation list and General Services 

Administration list as required; (k) 

failed to obtain a current mortgage 

payoff statement; (l) failed to resolve 

discrepancies in a borrower’s social 

security number; and (m) failed to retain 

required forms in the case binder. 

9. Bay-Valley Mortgage Group, Garden 

Grove, CA [Docket No. 20–2004–MR] 

Action: On September 1, 2020, the 

Board voted to enter into a settlement 

agreement with Bay-Valley Mortgage 

Group that included a civil money 

penalty of $9,819. The settlement does 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Bay-Valley 

Mortgage Group failed to timely notify 

HUD of a sanction in fiscal year 2019. 

10. BNB Financial Inc., Glendale, CA 

[Docket No. 20–2006–MR] 

Action: On September 1, 2020, the 

Board voted to enter into a settlement 

agreement with BNB Financial (‘‘BNB 

Financial’’) that required BNB Financial 

to pay a civil money penalty in the 

amount of $5,000. The settlement does 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: BNB failed to 

maintain the minimum required 

adjusted net worth in fiscal year 2019. 

11. CBC Mortgage Agency dba Chenoa, 

South Jordan, UT [Docket No. 20–2043– 

MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with CBC Mortgage Agency 

(‘‘CBC Mortgage’’) that included a civil 

money penalty of $12,000. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: CBC Mortgage 

falsely advertised its down payment 

assistance program as ‘‘HUD approved.’’ 

12. Centralbanc Mortgage Corporation, 

Bellevue, WA [Docket No. 20–2010–MR] 

Action: On September 1, 2020, the 

Board voted to enter into a settlement 

agreement with Centralbanc Mortgage 

Corporation (‘‘Centralbanc’’) that 

included a civil money penalty of 

$14,189. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Centralbanc (a) failed to timely notify 

HUD of a state sanction in its fiscal year 

2018; and (b) submitted a false 

certification to HUD concerning 

Centralbanc’s fiscal year 2018. 

13. Columbus Capital Lending, LLC, 

Miami, FL [Docket No. 19–2032–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Columbus Capital 

Lending, LLC (‘‘Columbus Capital’’) that 

included a civil money penalty of 

$10,000. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Columbus Capital (a) failed to maintain 

9362 Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices 

the minimum required liquid assets in 

fiscal year 2018; and (b) failed to timely 

report the failure to maintain the 

minimum required liquid assets in fiscal 

year 2018. 

14. CommonFund Mortgage 

Corporation, Syracuse, NY [Docket No. 

19–2026–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with CommonFund Mortgage 

Corporation (‘‘CommonFund’’) of 

payment of civil money penalties of 

$14,819. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

CommonFund (a) failed to notify HUD 

of a sanction in fiscal year 2018; and (b) 

submitted a false certification to HUD 

concerning CommonFund’s fiscal year 

2018. 

15. Cooperativa de Ahorro y Credito de 

Aguada, Aguada, PR [Docket No. 19– 

2024–MR] 

Action: On December 17, 2019, the 

Board voted to withdraw the FHA 

approval of Cooperativa de Ahorro y 

Credito de Aguada for a period of one 

year. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Cooperativa de 

Ahorro y Credito de Aguada failed to 

maintain the minimum required 

adjusted net worth in fiscal year 2018. 

16. Cooperativa de Ahorro y Cre ́dito de 

Rinco ́n, Rinco ́n, PR [Docket No. 19– 

2023–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Cooperativa de Ahorro 

y Credito de Rinco ́n (‘‘Rinco ́n’’) that 

included a civil money penalty of 

$10,000. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: Rinco ́n 

(a) failed to maintain the minimum 

required adjusted net worth in fiscal 

year 2018; and (b) failed to timely report 

the failure to maintain the required 

minimum adjusted net worth in fiscal 

year 2018. 

17. Credence Funding Corporation, 

Aberdeen, MD [Docket No. 18–1873– 

MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Credence Funding 

Corporation that included a civil money 

penalty of $9,819. The settlement does 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Credence Funding Corp (a) failed to 

maintain the minimum required 

adjusted net worth in fiscal year 2018; 

and (b) failed to timely report the failure 

to maintain the required minimum 

adjusted net worth in fiscal year 2018. 

18. DHA Financial LLC, Greenwood 

Village, CO [Docket No. 19–1954–MR] 

Action: On December 17, 2019, the 

Board voted to withdraw the FHA 

approval of DHA Financial LLC 

(‘‘DHA’’) for a period of one year. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: DHA 

(a) failed to maintain the minimum 

required adjusted net worth in fiscal 

year 2018; and (b) failed to maintain the 

minimum required adjusted net worth 

in fiscal year 2019. 

19. Directors Mortgage, Inc., Lake 

Oswego, OR [Docket No. 19–2043–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Directors Mortgage, Inc. 

that included a civil money penalty of 

$5,000. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Directors 

Mortgage failed to timely notify HUD of 

a sanction in fiscal year 2018. 

20. Dwight Capital LLC, New York, NY 

[Docket No. 20–2077–MR] 

Action: On July 16, 2020, the Board 

voted to impose a civil money penalty 

of $1,081,780 against Dwight Capital 

LLC (‘‘Dwight Capital’’), which was 

included as part of a subsequent 

settlement agreement along with a 

requirement that Dwight Capital provide 

a plan to HUD to address staffing levels 

in relation to its loan volume. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: Dwight 

Capital (a) promoted an individual to 

Chief Underwriter without HUD 

approval, in violation of the MAP 

Guide; and (b) had two individuals 

concurrently designated as Chief 

Underwriter in violation of the MAP 

Guide. 

21. Endeavor Capital, LLC, Chesterfield, 

MO [Docket No. 19–2008–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Endeavor Capital, LLC 

(‘‘Endeavor’’) that included a civil 

money penalty payment of $5,000. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Endeavor failed 

to report an operating loss exceeding 

20% of its net worth in fiscal year 2018. 

22. Evesham Mortgage LLC dba 3rd 

Generation Mortgages, Marlton, NJ 

[Docket No. 19–1948–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Evesham Mortgage LLC 

dba 3rd Generation Mortgages 

(‘‘Evesham’’) that included a civil 

money penalty of $37,872 and the 

indemnification of four FHA-insured 

loans that had not yet resulted in an 

insurance claim, three for a term of five 

years and the fourth for the life of the 

loan. The settlement does not constitute 

an admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Evesham (a) failed to properly 

document the source and adequacy of 

funds used to close an FHA insured 

loan; (b) failed to properly document a 

borrower’s employment; (c) failed to 

properly calculate the monthly 

obligation of a borrower’s student loan 

debt; and (d) failed to document that a 

borrower met the net self-sufficiency 

rental income test for a three-unit 

property. 

23. EZ Fundings, Inc., Rancho 

Cucamonga, CA [Docket No. 19–2052– 

MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with EZ Fundings, Inc. (‘‘EZ 

Fundings’’) that included a civil money 

penalty of $5,000. The settlement does 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: EZ Fundings 

failed to timely notify HUD of a state 

sanction in fiscal year 2018. 

24. Finance of America Reverse, LLC, 

Tulsa, OK [Docket No. 20–0028–FC] 

Action: On January 8, 2020, the Board 

voted to approve two settlement 

agreements with Finance of America 

Reverse, LLC (‘‘FAR’’) that included a 

$500,000 payment to resolve allegations 

under the Program Fraud Civil 

Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices 9363 

Remedies Act and a $1,970,000 payment 

to resolve allegations under the False 

Claims Act. The settlements do not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: A 

mortgagee for which FAR was the 

successor-in-interest provided 

appraisers with information to 

improperly influence the appraised 

values of properties that subsequently 

secured FHA-insured mortgages. 

25. Forthright Funding Corporation, 

Scottsdale, AZ [Docket No. 19–2027– 

MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Forthright Funding 

Corporation (‘‘Forthright’’) that included 

a civil money penalty of $15,000. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Forthright (a) failed to maintain the 

minimum required adjusted net worth 

in fiscal year 2018; (b) failed to timely 

report the failure to maintain the 

required minimum adjusted net worth 

in fiscal year 2018; (c) failed to report 

an operating loss exceeding 20% of its 

net worth in fiscal year 2018; and (d) 

failed to file quarterly financial 

statements after an operating loss 

exceeding 20% of its net worth in fiscal 

year 2018. 

26. Geauga Savings Bank, Beachwood, 

OH [Docket No. 19–2018–MRT] 

Action: On June 26, 2019, the Board 

voted to withdraw the FHA approval of 

Geauga Savings Bank (‘‘Geauga’’) for a 

period of one year. Geauga appealed the 

withdrawal and, as part of a settlement, 

the Board rescinded the Notice of 

Violation such that HUD imposed 

neither administrative action nor a civil 

money penalty against Geauga and 

Geauga remained an FHA-approved 

lender. The settlement agreement does 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Geauga failed to 

timely meet the requirements for annual 

recertification of its FHA approval. 

27. Global Bancorp dba Versailles 

Property, Irvine, CA [Docket No. 19– 

1931–MR] 

Action: On December 17, 2019, the 

Board voted to withdraw Global 

Bancorp dba Versailles Property 

(‘‘Global’’) for a period of one year. 

Global appealed the withdrawal, but 

voluntarily withdrew the appeal on 

November 12, 2020. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: Global 

(a) failed to maintained the minimum 

required adjusted net worth in fiscal 

year 2017; (b) failed to maintained the 

minimum required adjusted net worth 

in fiscal year 2018; (c) failed to maintain 

the minimum required liquid assets in 

fiscal year 2018; (d) failed to timely 

report the failure to maintain the 

required minimum adjusted net worth 

and liquid assets in fiscal year 2018; and 

(e) submitted a false certification to 

HUD concerning Global’s fiscal year 

2017. 

28. Guaranteed Rate Inc., Chicago, IL 

[Docket No. 20–2068–MR] 

Action: On January 8, 2020, the Board 

voted to authorize a settlement with 

Guaranteed Rate Inc. (‘‘GRI’’) that would 

ultimately include a payment of 

$15,060,000 to resolve allegations made 

under the False Claims Act. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: GRI (a) 

compensated underwriters with 

impermissible commissions; (b) failed to 

comply with the self-reporting 

requirements for endorsed loans that 

were not eligible for endorsement; and 

(c) employed individuals who engaged 

in conduct designed to cause the 

endorsement of loans not eligible for 

endorsement. 

29. Hallmark Home Mortgage, LLC, Fort 

Wayne, IN [Docket No. 19–1938–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Hallmark Home 

Mortgage LLC (‘‘Hallmark’’) that 

included a civil money penalty of 

$9,000. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Hallmark (a) failed to report an 

operating loss exceeding 20% of its net 

worth in fiscal year 2018; and (b) failed 

to file quarterly financial statements 

after an operating loss exceeding 20% of 

its net worth in fiscal year 2018. 

30. Idaho Central Credit Union, 

Pocatello, ID [Docket No. 19–2034–MR] 

Action: On September 1, 2020, the 

Board voted to enter into a settlement 

agreement with Idaho Central Credit 

Union (‘‘Idaho Central’’) that included a 

civil money penalty of $5,000. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Idaho Central 

failed to notify HUD of a change to its 

business structure in fiscal year 2018. 

31. Ideal Home Loans, LLC, Denver, CO 

[Docket No. 19–2009–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Ideal Home Loans, LLC 

(‘‘Ideal’’) that included a civil money 

penalty of $14,819. The settlement does 

not constitute an admission of liability 

or fault. 

Cause: The Board voted to accept this 

offer based on the following alleged 

violations of HUD requirements. Ideal: 

(a) Failed to maintain the minimum 

required adjusted net worth in fiscal 

year 2018; (b) failed to maintain the 

minimum required liquid assets in fiscal 

year 2018; and (c) failed to timely report 

the failure to maintain the minimum 

required liquid assets in fiscal year 

2018. 

32. JNC Mortgage Company, Inc., El 

Paso, TX [Docket No. 19–2021–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with JNC Mortgage Company, 

Inc. (‘‘JNC Mortgage’’) that included a 

civil money penalty of $14,319. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: JNC 

Mortgage (a) failed to timely notify HUD 

of state sanction in fiscal year 2018; and 

(b) submitted a false certification to 

HUD concerning JNC Mortgage’s fiscal 

year 2018. 

33. Lenox Financial Mortgage 

Corporation, Santa Ana, CA [Docket No. 

19–1971–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Lenox Financial 

Mortgage Corporation (‘‘Lenox’’) that 

included a civil money penalty of 

$4,500. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Lenox failed to 

maintain the minimum required 

adjusted net worth in fiscal year 2017. 

9364 Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices 

34. Lenox Financial Mortgage 

Corporation, Santa Ana, CA [Docket No. 

20–2008–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Lenox that included a 

civil money penalty of $10,000. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action on 

the basis of the following violations of 

HUD requirements. Lenox (a) failed to 

timely notify FHA of an operating loss 

exceeding 20% of its net worth during 

its fiscal year 2018; and (b) failed to file 

quarterly financial statements after an 

operating loss exceeding 20% of its net 

worth in fiscal year 2018. 

35. Midwest Equity Mortgage, LLC nka 

Celebrity Home Loans, LLC, Oakbrook 

Terrace, IL [Docket No. 19–2029–MR] 

Action: On May 20, 2020, the Board 

voted to impose a civil money penalty 

of $15,000 against Midwest Equity 

Mortgage, LLC (‘‘Midwest Equity’’), 

which was included in a subsequent 

settlement agreement. The settlement 

does not constitute an admission of 

liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Midwest Equity (a) failed to report an 

operating loss exceeding 20% of its net 

worth in the third quarter of fiscal year 

2018; (b) failed to report an operating 

loss exceeding 20% of its net worth in 

the fourth quarter of fiscal year 2018; 

and (c) failed to notify HUD of a change 

to its business structure in fiscal year 

2018. 

36. Mortgage Capital Associates, Los 

Angeles, CA [Docket No. 20–2070–MR] 

Action: On December 17, 2019, the 

Board voted to withdraw the FHA 

approval of Mortgage Capital Associates 

(‘‘Mortgage Capital’’) for a period of one 

year. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Mortgage Capital 

failed to timely notify HUD of a sanction 

in fiscal year 2019. 

37. Mortgage Now Inc., Shrewsbury, NJ 

[Docket No. 19–1918–MR] 

Action: On December 17, 2019, the 

Board voted to impose a civil money 

penalty of $9,623 against Mortgage Now 

Inc. (‘‘Mortgage Now’’), which was 

included in a subsequent settlement 

agreement. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Mortgage Now (a) failed to maintain the 

minimum required adjusted net worth 

in fiscal year 2017; (b) failed to timely 

report the failure to maintain the 

required minimum adjusted net worth 

in fiscal year 2017; and (c) failed to 

timely notify HUD of a sanction in fiscal 

year 2017. 

38. Mortgage Unlimited, LLC, Garfield, 

NJ [Docket No. 19–2039–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Mortgage Unlimited, 

LLC (‘‘Mortgage Unlimited’’) that 

included a civil money penalty of 

$9,819. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Mortgage Unlimited (a) failed to report 

an operating loss exceeding 20% of its 

net worth in fiscal year 2018; and (b) 

failed to file quarterly financial 

statements after an operating loss 

exceeding 20% of its net worth in fiscal 

year 2018. 

39. myCUmortgage, LLC, Beavercreek, 

OH [Docket No. 19–2045–MR] 

Action: On December 17, 2019, the 

Board voted to assess a civil money 

penalty of $5,000 against 

myCUmortgage, LLC 

(‘‘myCUmortgage’’), which was 

included in a subsequent settlement 

agreement. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: myCUmortgage 

failed to timely notify HUD of a sanction 

in fiscal year 2018. 

40. NOVA Financial & Investment 

Corporation, Tucson, AZ [Docket No. 

20–2023–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with NOVA Financial & 

Investment Corporation (‘‘NOVA 

Financial’’) that included both an 

indemnification payment to HUD of 

$752,518 to indemnify HUD for seven 

loans that resulted in a claim for FHA 

insurance and the indemnification of an 

eighth loan that had not yet resulted in 

an insurance claim, for the life of the 

loan. The settlement does not constitute 

an admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: NOVA Financial 

violated FHA requirements by 

endorsing or causing to be endorsed 

FHA-insurance eight FHA-insured loans 

that were not eligible for endorsement 

due to the actions of a criminal fraud 

scheme involving a now-former loan 

officer that relied on fraudulent gift 

letters and gift funds. 

41. Obsidian Financial Services, Inc., 

Melbourne, FL [Docket No. 19–2023– 

MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Obsidian Financial 

Services, Inc. (‘‘Obsidian’’) that 

included a civil money penalty of 

$28,942. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Obsidian (a) failed to timely notify HUD 

of a sanction in fiscal year 2017; (b) 

submitted a false certification to HUD 

concerning Obsidian’s fiscal year 2017; 

(c) failed to timely notify HUD of a 

sanction in fiscal year 2018; and (d) 

submitted a false certification to HUD 

concerning Obsidian’s fiscal year 2018. 

42. Omega Financial Services Inc., 

Union, NJ [Docket No. 19–2048–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Omega Financial 

Services (‘‘Omega’’) that included a civil 

money penalty of $9,819. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: Omega 

(a) failed to maintain the minimum 

required liquid assets in fiscal year 

2018; and (b) failed to timely report the 

failure to maintain the minimum 

required liquid assets in fiscal year 

2018. 

43. Panorama Mortgage Group LLC, Las 

Vegas, NV [Docket No. 19–2015–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Panorama Mortgage 

Group LLC (‘‘Panorama’’) that included 

a civil money penalty of $19,936. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Panorama (a) failed to ensure that all 

objections to title were cured with 

respect to one FHA-insured loan; (b) 

failed, with respect to one FHA-insured 

loan, to verify and determine the 

delinquency status of a federal non-tax 

debt; and (c) improperly charged a 

borrower a utility fee not permitted 

under a purchase contract. 

Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices 9365 

44. Paragon Mortgage Corporation, 

Phoenix, AZ [Docket No.: 19–2028–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Paragon Mortgage 

Corporation (‘‘Paragon’’) that included a 

civil money penalty of $29,457. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Paragon (a) failed to maintain the 

minimum required adjusted net worth 

in fiscal year 2018; (b) failed to timely 

report the failure to maintain the 

required minimum adjusted net worth 

in fiscal year 2018; (c) failed to maintain 

the minimum required liquid assets 

throughout fiscal year 2018; and (d) 

failed to timely report the failure to 

maintain the minimum required liquid 

assets in fiscal year 2018; (e) failed to 

report an operating loss exceeding 20% 

of its net worth in fiscal year 2018; and 

(f) failed to file quarterly financial 

statements after an operating loss 

exceeding 20% of its net worth in fiscal 

year 2018. 

45. Parkside Lending, LLC, San 

Francisco, CA [Docket No. 20–2028–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Parkside Lending, LLC 

(‘‘Parkside’’) for a civil money penalty of 

$10,000. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Parkside failed to 

timely notify HUD of two state sanctions 

in fiscal years 2017 and 2018. 

46. Prime Choice Funding, Inc., Tustin, 

OK [Docket No. 19–1954–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Prime Choice Funding 

(‘‘Prime Choice’’) that included a civil 

money penalty of $37,442. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: Prime 

Choice (a) failed to report an operating 

loss exceeding 20% of its net worth in 

fiscal year 2018; (b) failed to file 

quarterly financial statements after an 

operating loss exceeding 20% of its net 

worth in fiscal year 2018; (c) failed to 

timely notify HUD of a sanction in fiscal 

year 2018; (d) submitted a false 

certification to HUD concerning Prime 

Choice’s fiscal year 2018; (e) failed to 

timely notify HUD of a sanction in fiscal 

year 2017; and (f) submitted a false 

certification to HUD concerning Prime 

Choice’s fiscal year 2017. 

47. RMS Associates, Las Vegas, NV 

[Docket No. 20–2002–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with RMS Associates 

(‘‘RMS’’) that included a civil money 

penalty of $14,819. The settlement does 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: RMS 

(a) failed to timely notify HUD of a 

sanction in fiscal year 2018; and (b) 

submitted a false certification to HUD 

concerning RMS’s fiscal year 2018. 

48. Ross Mortgage Company, Inc., 

Westborough, MA [Docket No. 19–1974– 

MR] 

Action: On May 12, 2020, the Board 

voted to accept a settlement agreement 

with Ross Mortgage Company (‘‘Ross 

Mortgage’’) that included a civil money 

penalty of $19,442. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: Ross 

Mortgage (a) failed to maintain the 

minimum required adjusted net worth 

in fiscal year 2017; (b) failed to timely 

report the failure to maintain the 

required minimum adjusted net worth 

in fiscal year 2017; and (c) failed to 

maintain the minimum required 

adjusted net worth in fiscal year 2018. 

49. Servion, Inc., New Brighton, MN 

[Docket No. 20–2065–MR] 

Action: On September 1, 2020 the 

Board voted to enter into a settlement 

agreement with Servion, Inc. 

(‘‘Servion’’) that included a civil money 

penalty of $14,819. The settlement does 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Servion (a) failed to timely notify HUD 

of a sanction in fiscal year 2018; and (b) 

submitted a false certification to HUD 

concerning Servion’s fiscal year 2018. 

50. Silvermine Ventures, LLC, Rye 

Brook, NY [Docket No. 19–2010–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Silvermine Ventures, 

LLC (‘‘Silvermine’’) that included a civil 

money penalty of $19,638. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Silvermine (a) failed to maintain the 

minimum required adjusted net worth 

in fiscal year 2018; (b) failed to timely 

report the failure to maintain the 

required minimum adjusted net worth 

in fiscal year 2018; (c) failed to maintain 

the minimum required liquid assets in 

fiscal year 2018; and (d) failed to timely 

report the failure to maintain the 

minimum required liquid assets in fiscal 

year 2018. 

51. SN Servicing Corporation, Baton 

Rouge, LA [Docket No. 20–20007–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with SN Servicing 

Corporation (‘‘SN Servicing’’) that 

included a civil money penalty of 

$9,819. The settlement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: SN Servicing 

failed to timely notify HUD of a sanction 

in fiscal year 2019. 

52. Springboard CDFI dba Springboard 

Mortgage Collaborative, Riverside, CA 

[Docket No. 20–2003–MR] 

Action: On May 12, 2020, the Board 

voted to impose a civil money penalty 

of $14,819 against Springboard CDFI 

dba Springboard Mortgage Collaborative 

(‘‘Springboard’’) which was included in 

a subsequent settlement agreement. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Springboard (a) failed to maintain the 

minimum required liquid assets in fiscal 

year 2018; (b) failed to timely report the 

failure to maintain the minimum 

required liquid assets in fiscal year 

2018; and (c) failed to timely notify 

HUD of a sanction in fiscal year 2019. 

53. TJC Mortgage, Inc., Birmingham, AL 

[Docket No. 20–2009–MR] 

Action: On May 12, 2020, the Board 

voted to impose a civil money penalty 

of $19,468 against TJC Mortgage, Inc. 

(‘‘TJC Mortgage’’), which was included 

in a subsequent settlement agreement. 

The settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: TJC 

Mortgage (a) failed to timely notify HUD 

of a sanction in fiscal year 2019; (b) 

failed to timely notify HUD of a sanction 

in fiscal year 2016; and (c) submitted a 

false certification to HUD concerning 

TJC Mortgage’s fiscal year 2016. 

9366 Federal Register / Vol. 86, No. 28 / Friday, February 12, 2021 / Notices 

54. Tradition Mortgage LLC, Lakeville, 

MN [Docket No. 19–2049–MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Tradition Mortgage LLC, 

(‘‘Tradition Mortgage’’) that included a 

civil money penalty of $14,819. The 

settlement agreement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged 

violations of HUD requirements: 

Tradition Mortgage (a) failed to timely 

notify HUD of a state sanction in fiscal 

year 2018; and (b) submitted a false 

certification to HUD concerning 

Tradition Mortgage’s fiscal year 2018. 

55. United Home Loans, Inc., 

Westchester, IL [Docket No. 20–2015– 

MR] 

Action: On September 1, 2020, the 

Board voted to accept a settlement 

agreement with United Home Loans, 

Inc. (‘‘United Home’’) that included a 

civil money penalty of $5,000. The 

settlement does not constitute an 

admission of liability or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: United Home 

failed to timely notify HUD of a sanction 

in fiscal year 2019. 

56. Valley Mortgage Inc., Fargo, ND 

[Docket No. 19–1956–MR] 

Action: On December 17, 2019, the 

Board voted to enter into a settlement 

agreement with Valley Mortgage Inc. 

(‘‘Valley Mortgage’’) that included a 

civil money penalty of $9,468 and the 

indemnification of one FHA-insured 

mortgage for a term of five years. The 

settlement agreement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Valley Mortgage 

violated FHA underwriting 

requirements by approving a loan that 

was not eligible for FHA insurance by 

failing to properly calculate the 

borrowers’ effective income. 

57. VIG Mortgage Corporation, San 

Juan, PR [Docket No. 20–2016–MR] 

Action: On May 12, 2020, voted to 

enter into a settlement agreement with 

VIG Mortgage Corporation (‘‘VIG’’) that 

included a civil money penalty of 

$4,909. The settlement agreement does 

not constitute an admission of liability 

or fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: VIG Mortgage 

failed to timely notify HUD of a change 

to VIG Mortgage’s business structure, 

consisting of a change in ownership, in 

fiscal year 2018. 

58. Weststar Mortgage Corporation, 

Albuquerque, NM [Docket No. 20–2005– 

MR] 

Action: On May 12, 2020, the Board 

voted to enter into a settlement 

agreement with Westar Mortgage 

Corporation (‘‘Weststar’’) that included 

a civil money penalty of $5,000. The 

settlement agreement does not 

constitute an admission of liability or 

fault. 

Cause: The Board took this action 

based on the following alleged violation 

of HUD requirements: Weststar failed to 

timely notify HUD of a sanction in fiscal 

year 2019. 

II. Lenders That Failed To Timely Meet 

Requirements for Annual 

Recertification of HUD/FHA Approval 

but Came Into Compliance 

Action: The Board entered into 

settlement agreements with the 

following lenders, which required the 

lender to pay a civil money penalty 

without admitting fault or liability. 

Cause: The Board took these actions 

based upon allegations that the listed 

lenders failed to comply with HUD’s 

annual recertification requirements in a 

timely manner. 

The lenders below paid the following 

civil money penalty amounts: 

1. Central Bank and Trust Lander, WY 

($10,067) [Docket No. 20–2038–MRT] 

The following lenders paid civil 

money penalties of $5,000. 

2. Community Investment Corporation, 

Chicago, IL [Docket No. 20–2081– 

MRT] 

3. Great Lakes Financial Group Ltd, 

Cleveland, OH [Docket No. 20–2090– 

MRT] 

The following lenders paid civil 

money penalties of $4,500. 

4. Buckeye State Bank, Powell, OH 

[Docket No. 20–2029–MRT] 

5. First Flight Federal Credit Union, 

Cary, NC [Docket No. 20–2032–MRT] 

6. Grand Savings Bank, Grove, OK 

[Docket No. 20–2034–MRT] 

7. SWI Financial Services Inc, 

Escondido, CA [Docket No. 20–2032– 

MRT] 

8. Windsor Federal Savings [Docket No. 

19–2040–MRT] 

III. Lenders That Failed To Meet 

Requirements for Annual 

Recertification of HUD/FHA Approval 

Action: The Board voted to withdraw 

the FHA approval of each of the lenders 

listed below for a period of one (1) year. 

Cause: The Board took this action 

based upon allegations that the lenders 

listed below were not in compliance 

with HUD’s annual recertification 

requirements. 

1. Apex Lending Inc., Santa Ana, CA 

2. Aries Loans Inc., El Segundo, CA 

3. City National Bank of New Jersey, 

Newark, NJ 

4. Consumer Loan Services, LLC, La 

Crosse, WI 

5. Gulf Atlantic Funding Group, Davie, 

FL 

6. Metro Phoenix Financial Services, 

LLC, Phoenix, AZ 

7. Mortgage Bank of California, 

Manhattan Beach, CA 

8. South Central Bank and Trust Co., 

Chicago, IL 

9. United Police Federal Credit Union, 

Miami, FL 

Janet M. Golrick, 

Acting Assistant Secretary for Housing/FHA 

Commissioner Chair, Mortgagee Review 

Board. 

[FR Doc. 2021–02921 Filed 2–11–21; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–6245–N–01] 

Mortgage and Loan Insurance 

Programs Under the National Housing 

Act—Debenture Interest Rates 

AGENCY: Office of the Assistant 

Secretary for Housing—Federal Housing 

Commissioner, HUD. 

ACTION: Notice. 

SUMMARY: This Notice announces 

changes in the interest rates to be paid 

on debentures issued with respect to a 

loan or mortgage insured by the Federal 

Housing Administration under the 

provisions of the National Housing Act 

(the Act). The interest rate for 

debentures issued under Section 

221(g)(4) of the Act during the 6-month 

period beginning January 1, 2021, is3⁄4

percent. The interest rate for debentures 

issued under any other provision of the 

Act is the rate in effect on the date that 

the commitment to insure the loan or 

mortgage was issued, or the date that the 

loan or mortgage was endorsed (or 

initially endorsed if there are two or 

more endorsements) for insurance, 

whichever rate is higher. The interest 

rate for debentures issued under these 

other provisions with respect to a loan 

or mortgage committed or endorsed 

during the 6-month period beginning 

January 1, 2021, is 13⁄8 percent. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Olazabal, Department of 

Housing and Urban Development, 451 

Seventh Street SW, Room 5146,