Federal Register / Vol. 75, No. 211 / Tuesday, November 2, 2010 / Notices 67387 

Authority: This notice is issued under 

authority of 5 U.S.C. 552, 33 U.S.C. 1223(b), 

and 33 U.S.C. 1228. 

Dated: October 25, 2010. 

Kevin S. Cook, 

Rear Admiral, U.S. Coast Guard, Director of 

Prevention Policy. 

[FR Doc. 2010–27592 Filed 11–1–10; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–4211–N–05] 

Credit Watch Termination Initiative 

Termination of Origination Approval 

Agreements 

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 HUDapproved 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 

44th 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 

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 

centers 

Universal American 

Mortgage Co..

25 Enterprise, Ste, 100 Aliso Viejo, CA 

92656.

Santa Ana ................................. 10/4/10 Santana. 

Capital Financial 

Mortgage Corp..

215 Kedron Ave., Folsom, PA 19033 ........ Camden ..................................... 9/9/2010 Philadelphia. 


hsrobinson on DSK69SOYB1PROD with NOTICES
67388 Federal Register / Vol. 75, No. 211 / Tuesday, November 2, 2010 / Notices 

Mortgagee name Mortgagee branch address HUD office jurisdictions Termination 

effective date 

Homeownership 

centers 

Nationwide Home 

Loans, Inc..

4100 NE 2nd Ave., Miami, FL 33137 ......... Miami ......................................... 9/9/2010 Atlanta. 

Access National Mortgage Corp..1800 Robert Fulton Dr., Ste 350, Reston, 

VA 20191–4346.

Richmond .................................. 9/2/2010 Philadelphia. 

BJV Financial Bank 

Services, Inc..

7221 W. Touhy Ave., Chicago, IL 60631 ... Chicago ..................................... 8/11/2010 Atlanta. 

Globe Mortgage 

America LLC.

475 Grand Ave. Englewood, NJ 07631 ..... Newark ...................................... 8/11/2010 Philadelphia. 

D and R Mortgage 

Corp..

29870 Middlebelt Rd., Ste 100, Farmington Hills, MI 48334.Atlanta ....................................... 8/1/2010 Atlanta. 

Dominion First Mortgage Corp..9970 Liberia Ave., Manassas, VA 20110 ... Richmond .................................. 8/1/2010 Philadelphia. 

Omni Capital Group 

LLC.

6855 S. Havana St., Ste 500, Centennial, 

CO 80112.

Denver ....................................... 8/1/2010 Denver. 

Q Financial Direct, 

Inc..

3155 NW 82nd Ave., Ste 200, Doral, FL 

33122.

Miami ......................................... 8/1/2010 Atlanta. 

Dated: October 22, 2010. 

David H. Stevens, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. 2010–27548 Filed 11–1–10; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF HOUSING AND 

URBAN DEVELOPMENT 

[Docket No. FR–5411–N–06] 

Credit Watch Termination Initiative; 

Termination of Direct Endorsement 

(DE) Approval 

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 Direct 

Endorsement (DE) Approval 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 DE Approval 

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 Approval Agreements 

terminated. On January 21, 2010 HUD 

issued Mortgagee Letter 2010–03 which 

advised the extended procedures for 

terminating Underwriting Authority of 

Direct Endorsement mortgagees. 

Termination of Direct Endorsement 

Approval: Approval of a DE mortgagee 

by HUD/FHA authorizes the mortgagee 

to underwrite single family mortgage 

loans and submit them to FHA for 

insurance endorsement. The Approval 

may be terminated on the basis of poor 

performance of FHA-insured mortgage 

loans underwritten by the mortgagee. 

The termination of a mortgagee’s DE 

Approval 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 DE Approval with any 

mortgagee having a default and claim 

rate for loans endorsed within the 

preceding 24 months that exceeds 300 

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 

quarterly review period ending March 

31, 2010, HUD is terminating the DE 

Approval of mortgagees whose default 

and claim rate exceeds both the national 

rate and 300 percent of the field office 

rate. 

Effect: Termination of the DE 

Approval precludes the mortgagee from 

underwriting 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 mortgagee; however, the 

cases may be transferred for completion 

of processing and underwriting to 

another mortgagee with DE Approval in 

that area. 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 DE Approval if the 

DE Approval for the affected area or 

areas 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, 202.10 and 202.12. 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 


hsrobinson on DSK69SOYB1PROD with NOTICES