The FHA warned lenders this week that it is keeping a close eye on how mortgage companies are following the agency’s standards.
And to put teeth into the warning, the FHA announced that it has permanently pulled its approval from two mortgage lenders: RSA Financial, Inc., Atlanta and 1st Alliance Mortgage LLC of Houston.
From the HUD press release:
HUD’s MRB cited RSA for misleading HUD that it was properly licensed by the Georgia Department of Banking and Finance at the time the company submitted an application to FHA for lender approval. In addition, the MRB alleges that RSA submitted false and/or misleading information regarding the criminal conviction and sanction history of its owner and executive, Ramsey Suphi Agan. HUD claims 1st Alliance engaged in prohibited branch arrangements, provided false certifications, failed to implement a Quality Control Plan, and a number of other violations of HUD/FHA standards.
“If lenders want to do business with the FHA, it’s critical that they provide complete and truthful information so that we can properly determine who we’re dealing with,” said FHA Commissioner David Stevens. “If any lender can’t operate within FHA’s guidelines, they can’t do business with us.”