|Home | En Español | Contact Us | A to Z|
HUD Archives: News Releases
HUD MORTGAGEE REVIEW BOARD TAKES ACTION AGAINST HESPERIA, CALIFORNIA LENDER
WASHINGTON - The Department of Housing and Urban Development announced that its Mortgagee Review Board has placed Diamond Coast Federal, Inc., of Hesperia, CA, on probation in Federal Housing Administration (FHA) programs, and is seeking a civil money penalty against the company.
This action follows a review of Diamond Coast Federal's loan origination practices by the Department's Quality Assurance Division that cited violations by the company of FHA single family housing program requirements.
The violations for which the company was cited included: failure to remit to HUD at least l84 mortgage insurance premiums collected from borrowers applying for FHA insured mortgages; noncompliance with branch office approval requirements; using non-employees to originate FHA insured mortgages; using, and paying fees to a non-FHA approved mortgagee for loan origination activities; and using misleading advertising in the Title I program.
Under the terms of the probation, the company must remit to HUD all unpaid mortgage insurance premiums; submit monthly reports prepared by an independent CPA evidencing payment of premiums on new loans; not engage in misleading advertising; and fully comply with all FHA requirements.
HUD's Mortgagee Review Board meets regularly in the Department's ongoing effort to ensure integrity in HUD's housing programs. The Board of high-level HUD officials reviews the activities of lenders that participate in Federal Housing Administration programs. The Board is authorized to impose administrative sanctions and civil money penalties against FHA approved lenders that violate the Department's program requirements.
Content Archived: January 20, 2009