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15 preclosing reviews 36 lenders approved lenders Atlanta centers center officials claim rates comply with FHA’s Credit Watch program default and claim Denver center Department of Housing Department’s direct endorsement authority eligibility for FHA excessive default Fannie Mae Federal Housing Administration FHA lenders FHA mortgage insurance FHA-approved lenders fiscal year 1999 four centers four homeownership centers Freddie Mac granted direct endorsement high-risk lenders high-risk loans hold lenders accountable Housing and Urban HUD’s Credit Watch HUD’s guidance HUD’s homeownership centers HUD’s insurance risk HUD’s Office last 15 preclosing lender reviews lenders direct endorsement lenders for review lenders received loan correspondents loan origination authority monitoring mortgage credit analysis Mortgagee Review Board Number of Lender participate in FHA’s percent perform technical reviews Philadelphia center poor performance Ranking Minority Member ratings for mortgage sanctions against lenders settlement agreements single-family housing single-family mortgage staff suspend the direct take enforcement actions technical review ratings underwrite loans
Page 34 - Ranking Minority Member, Subcommittee on Housing and Community Opportunity, House Committee on Banking and Financial Services; the Honorable James A Leach, Chairman, and the Honorable John J. LaFalce, Ranking Minority Member, House Committee on Banking and Financial Services; the Honorable Carl Levin, Ranking Minority Member, Permanent Subcommittee on Investigations, Senate Committee on Governmental Affairs; the Honorable Phil
Page 8 - centers, each of which is responsible for a multistate area. (See fig. 3.) Under the 2020 plan, HUD's single-family housing staff was cut by more than 50 percent. The homeownership centers are located in Atlanta, Georgia; Denver, Colorado; Philadelphia, Pennsylvania; and Santa Ana, California, and report directly to HUD's Deputy Assistant Secretary for Single-Family Housing.
Page 34 - the Honorable Joseph Lieberman, Ranking Minority Member, Senate Committee on Governmental Affairs. We will also send copies of this report to the Honorable Andrew M Cuomo, Secretary of HUD; the Honorable William C. Apgar, HUD Assistant Secretary for Housing-Federal Housing Commissioner; and the Honorable Jacob J. Lew, Director, Office of Management and Budget. We will make copies available to others upon
Page 11 - Standards for Granting Direct Endorsement Authority Are Not Adequately Defined HUD's homeownership centers are responsible for granting direct endorsement authority—the ability to underwrite loans and determine their eligibility for FHA mortgage insurance without HUD's prior review— to lenders participating in
Page 30 - a good job. Because of these deficiencies, HUD's lender reviews and technical reviews are not as effective as they could be in mitigating financial losses to the Department. HUD has not taken sufficient steps to hold lenders accountable for poor performance and program violations. Numerous lenders are not complying
Page 3 - Recent cases of mortgage fraud across the country have raised concerns about HUD's oversight of these lenders. For example, in December 1999, HUD's Office of the Inspector General and the Department of Justice announced criminal charges against 39 California mortgage lenders, real estate professionals, and other persons
Page 8 - loans, a lender, in addition to meeting other HUD requirements, must be one of the following: (1) a member of the Federal Reserve System or an institution whose accounts are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration; (2) a financial institution whose principal activity is lending or the investing of funds in real estate mortgages; or (3) a federal, state, or municipal government agency.
Page 5 - underwriting requirements, the centers have made limited use of this ability. In fiscal year 1999 the Philadelphia center suspended the direct endorsement authority of eight lenders; however, the other three centers did not take this action against any lenders. Furthermore, HUD's technical review ratings for fiscal year 1999 showed frequent noncompliance by lenders with FHAs requirements, indicating that many
Page 14 - HUD's guidance stresses the importance of using risk analysis to allocate a larger share of monitoring resources to program activities that pose the highest risks to the Department. However, HUD's homeownership centers have not adequately focused their monitoring efforts on lenders and loans that pose the greatest insurance risks. The centers use two monitoring tools to ensure lenders
Page 8 - lenders are authorized to originate FHA-insured loans, meaning that they can accept mortgage applications, obtain employment verifications and credit histories on applicants, order appraisals, and perform other tasks that precede the loan underwriting process. Approximately 2,900 of the FHA-approved lending institutions also have direct endorsement authority, meaning that they can underwrite loans and determine their eligibility for FHA mortgage insurance without