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 Department of Housing and Urban Development [Docket No. FR-5411-N-03]
 AGENCY: Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD.
 ACTION: Notice.
 SUMMARY: This notice advises of the cause and effect of termination of Origination Approval Agreements taken by HUD's Federal Housing Administration (FHA) against HUD-approved mortgagees through the FHA Credit Watch Termination Initiative. This notice includes a list of mortgagees which have had their Origination Approval Agreements terminated.
 FOR FURTHER INFORMATION CONTACT: The Quality Assurance Division, Office of Housing, Department of Housing and Urban Development, 451 Seventh Street, SW., Room B133-P3214, Washington, DC 20410-8000; telephone (202) 708-2830 (this is not a toll-free number). Persons with hearing or speech impairments may access that number through TTY by calling the Federal Information Relay Service at (800) 877-8339.


SUPPLEMENTARY INFORMATION: HUD has the authority to address deficiencies in the performance of lenders' loans as provided in HUD's mortgagee approval regulations at 24 CFR 202.3. On May 17, 1999 HUD published a notice (64 FR 26769), on its procedures for terminating Origination Approval Agreements with FHA lenders and placement of FHA lenders on Credit Watch status (an evaluation period). In the May 17, 1999 notice, HUD advised that it would publish in the 
                    **Federal Register**
                     a list of mortgagees, which have had their Origination Approval Agreements terminated. *Termination of Origination Approval Agreement:*
                     Approval of a mortgagee by HUD/FHA to participate in FHA mortgage insurance programs includes an Origination Approval Agreement (Agreement) between HUD and the 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. The termination of a mortgagee's Agreement is separate and apart from any action taken by HUD's Mortgagee Review Board under HUD's regulations at 24 CFR part 25. *Cause:*
                     HUD's regulations 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. For the 43rd review period, HUD is terminating the Agreement of mortgagees whose default and claim rate exceeds both the national rate and 200 percent of the field office rate. *Effect:*
                     Termination of the Agreement precludes that branch(es) of the mortgagee from originating FHA-insured single-family mortgages within the area of the HUD field office(s) listed in this notice. Mortgagees authorized to purchase, hold, or service FHA insured mortgages may continue to do so. Loans that closed or were approved before the termination became effective may be submitted for insurance endorsement. Approved loans are those already underwritten and approved by a DE underwriter, and cases covered by a firm commitment issued by HUD. Cases at earlier stages of processing cannot be submitted for insurance by the terminated branch; however, they may be transferred for completion of processing and underwriting to another FHA insured mortgagee with direct endorsement approval for the area covered by the termination. Mortgagees are obligated to continue to pay existing insurance premiums and meet all other obligations associated with insured mortgages. A terminated mortgagee may apply for reinstatement of the Origination Approval Agreement if the Approval for the affected branch or branches has been terminated for at least six months and the mortgagee continues to be an approved mortgagee meeting the requirements of 24 CFR 202.5, 202.6, 202.7, 202.8 and 202.12. However, Mortgagee Letter 2010-20 and Final Rule 5356-F-02 at 24 CFR 202 eliminates FHA approval for loan correspondents after December 31, 2010. Therefore, HUD will not accept requests for reinstatement from loan correspondents after that date. The mortgagee's application for reinstatement must be in a format prescribed by the Secretary and signed by the mortgagee. In addition, the application must be accompanied by an independent analysis of the terminated office's operations as well as its mortgage production, specifically including the FHA-insured mortgages cited in its termination notice. This independent analysis shall identify the underlying cause for the mortgagee's high default and claim rate. The analysis must be prepared by an independent Certified Public Accountant (CPA) qualified to perform audits under Government Auditing Standards as provided by the Government Accountability Office. The mortgagee must also submit a written corrective action plan to address each of the issues identified in the CPA's report, along with evidence that the plan has been implemented. The application for a new Agreement should be in the form of a letter, accompanied by the CPA's 
                    ( print page 61165)
                    report and corrective action plan. The request should be sent to the Director, Office of Lender Activities and Program Compliance, 451 Seventh Street, SW., Room B133-P3214, Washington, DC 20410-8000 or by courier to 490 L'Enfant Plaza, East, SW., Suite 3214, Washington, DC 20024-8000. *Action:*
                     The following mortgagees have had their Origination Agreements terminated by HUD: Mortgagee name
Mortgagee branch address
HUD office
                             jurisdictions
Termination
                             effective date
Homeownership
                             centersAccess National Mortgage Corporation
1800 Robert Fulton Drive, Ste 350, Reston, VA 20191
Atlanta
7/9/2010
Atlanta.Access National Mortgage Corporation
1800 Robert Fulton Drive, Ste 350, Reston, VA 20191
Boston
7/9/2010
Philadelphia.Access National Mortgage Corporation
1800 Robert Fulton Drive, Ste 350, Reston, VA 20191
Greensboro
7/9/2010
Atlanta.Allied Home Mortgage Capital Corporation
6110 Pinemont Drive, Ste 215, Houston, TX 77092
Baltimore
5/27/2010
Philadelphia.1st Continental Mortgage Inc
2691 E. Oakland Park Blvd., Ste 2, Ft. Lauderdale, FL 33306
Tampa
5/20/2010
Atlanta.American First Mortgage LLC
7155 Kerr Plaza, Olive Branch, MS 38654
Memphis
5/20/2010
Atlanta.Amerinet Financial LLC
16201 Trade Zone Ave, Ste 101, Upper Marlboro, MD 20774
Washington
5/20/2010
Philadelphia.Associated Capital Resources Inc
706 East Bell Road, Ste 100, Phoenix, AZ 85022
Phoenix
5/20/2010
Santa Ana.Castle Home Mortgage Corp
1600 Route 22, East, Union, NJ 07083
Newark
5/20/2010
Philadelphia.Dell Franklin Financial LLC
7061 Columbia Gateway Dr, Ste 110, Columbia, MD 21046
Washington
5/20/2010
Philadelphia.Dell Franklin Financial LLC
7061 Columbia Gateway Dr, Ste 110, Columbia, MD 21046
Richmond
5/20/2010
Philadelphia.EMI Equity Mortgage INC
1651 Ave Ponce De Leon, San Juan, PR 00909
Caribbean
5/28/2010
Atlanta.First Mortgage Group INC
118 Moulton Street East, Ste 2, Decatur, AL 35601
Birmingham
5/28/2010
Atlanta.Fox Valley Mortgage Group
455 East Main Street, East Dundee, IL 60118
Chicago
7/9/2010
Philadelphia.Hanover Funding INC
7 Kingsbridge Road, Fairfield, NJ 07004
Newark
5/20/2010
Philadelphia.JPMorgan Chase Bank NA
900 Stewart Avenue, Garden City, NY 11530
Atlanta
7/11/2010
Atlanta.JPMorgan Chase Bank NA
900 Stewart Avenue, Garden City, NY 11530
New Orleans
7/11/2010
Denver.Key Financial Corporation
3631 131st Avenue North, Clearwater, FL 33762-4263
Baltimore
7/1/2010
Philadelphia.Midwest Funding Group
6343 Presidential Gateway, Columbus, OH 43231-7695
Columbus
5/20/2010
Atlanta.Mortgage Plus INC
67 Walnut Avenue, Ste 310, Clark, NJ 07066-1687
Newark
5/28/2010
Philadelphia.Pacific Coast Mortgage INC
6991 East Camelback Rd., Ste C250, Scottsdale, AZ 85251-2452
Phoenix
5/28/2010
Santa Ana.Preferred Lending Group LLC
9700 63rd Ave. N Ste 205, Maple Grove, MN 55369
Minneapolis
6/1/2010
Denver.Real Estate Mortgage Network, Inc
70 Grand Avenue, River Edge, NJ 07661
Atlanta
7/2/2010
Atlanta.Residential Mortgage Corp
1332 Andrea Street, Bowling Green, KY 42104-3334
Louisville
6/1/2010
Atlanta.Summit Funding
2601 Fair Oaks Boulevard, Sacramento, CA 95864
Fort Worth
7/1/2010
Denver.
 Dated: September 23, 2010. David H. Stevens, Assistant Secretary for Housing—Federal Housing Commissioner.


[FR Doc. 2010-24827 Filed 10-1-10; 8:45 am] BILLING CODE 4210-67-P