HUD terminated lenders with default, claim rates greater than 250% of local area
By SAM GARCIA
9/17/2003

Several lenders have had their origination approval agreements terminated by HUD, including a Jackson, Miss. branch of one of the country's largest lenders.

According to a notice in the Federal Register dated September 15, poor performance of loans originated by a number of lenders led HUD -- or the U.S. Department of Housing and Urban Development -- to terminate their ability to participate in the Federal Housing Administration (FHA) mortgage insurance program.

HUD says it can terminate participation in the FHA program if a mortgagee has a default and claim rate, for loans endorsed within the past two years, that exceeds the national rate and exceeds 200 percent of HUD's local field office rate. This time around, HUD said it only terminated lenders that exceeded 250% of the field office rate.

Among the terminated mortgagees was a Hattiesburg, Miss. branch of Countrywide Home Loans, Inc. Countrywide, which reported August fundings of $41 billion, did not immediately respond to MortgageDaily.com's requests for a statement.

Other lenders on HUD's termination list include the following companies:
Mortgagee Name

City, State
American Home Mortgage Company

Chattanooga, TN
American Mortgage Service, Inc.

Millington, TN
Approved Mortgage Corp.

Greenwood, IN
Capital Mortgage Finance Corp.

Crofton, MD
Citizens First Mortgage Solutions, Inc.

Tucker, GA
Crest Mortgage Company

Dallas, TX
Decatur Mortgage Company LLC

Indianapolis, IN
Encore Mortgage Service

Voorhees, NJ
First Community Mortgage, Inc.

Fort Myers, FL
First Security Mortgage Service

Tampa, FL
Golden Empire Mortgage, Inc.

Rancho Cucamonga, CA
Gulf Atlantic Funding Group

Davie, FL
K&B Capital Corporation

Marietta, GA
Key Bank & Trust

Owings Mills, MD
Nally & Company

Louisville, KY
New Heights Capital, LLC

Atlanta, GA
New York Mortgage Bankers

Hollis, NY
Northland Funding Group
DBA Capital Mortgage Services.

Austin, TX
Pinnacle Financial Corp

Fort Myers, FL
Pryme Investment & Mtg. Brokers, Inc. South Murray, UT
Radius Capital Corp. Quartz Hill, CA
Saxon Equities Corp. Hauppauge, NY
US Mortgage Finance Corp. Towson, MD

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