Claremore Mortgage Lender Ordered To Stop FHA Mortgages
CLAREMORE, OK -- The Federal Housing Administration's Mortgagee Review Board (MRB) announced Tuesday it has immediately and permanently withdrawn the FHA approval of a Claremore mortgage lender.
HUD spokesperson Brian Sullivan says the Claremore firm, ProMortgage Inc., can no longer do business with the Federal Housing Administration.
"FHA takes its oversight role very seriously and will move swiftly and decisively to protect borrowers from unscrupulous lenders," said FHA Commissioner David Stevens. "Any lender who refuses to comply with FHA requirements will simply no longer enjoy the privilege of participating in FHA programs."
According to a news release, the withdrawal action will permanently prevent ProMortgage from originating FHA insured mortgages.
The news release goes on to say ProMortgage failed to adopt and maintain a Quality Control Plan, failed to perform Quality Control reviews of loans that went into default within six months after closing, engaged in a prohibited branch arrangement, made false certifications on the HUD/VA Addendum to the Uniform Residential Loan Application (URLA), failed to comply with home office operation requirements, and failed to report employee compensation on the appropriate form.
In addition, the Company allowed borrowers to provide verification of employment directly to the lender which creates an opportunity for manipulation or falsification of documents submitted.
The FHA says verification of employment must be submitted directly to the lender by the employer.
The MRB also voted to seek a monetary penalty from ProMortgage in the amount of $124,000.
ProMortgage may appeal the Board sanctions by submitting a written request for a hearing before an Administrative Law Judge within 30 days.