UPDATE 1-U.S. FHA disbars 4 mortgage lenders from program

(Recasts to incorporate announcement of additional firm, adds
details)

WASHINGTON, Jan 25 (BestGrowthStock) – The Federal Housing
Administration on Monday said it disbarred four lenders from
its loan guarantee program and suspended a fifth, as the Obama
administration steps up its enforcement of mortgage
irregularities.

The FHA’s Mortgagee Review Board said it was “withdrawing”
Strategic Mortgage Corporation, ProMortgage Inc, Americare
Investment Group Inc, and Premium Capital Funding, LLC, from
its list of qualified lenders.

FHA Commissioner David Stevens said the withdrawals amount
to permanent disbarment from the program.

The government also suspended Home Mortgage, Inc from the
program. Stevens said HMI would be suspended for a minimum of
six months.

Some of the issues that led to the withdrawals from the
program included charging borrowers excessive fees, failing to
comply with employee requirements, and making false
certifications to the government.

The FHA said Americare Investment was withdrawn after
failing to make a single monthly payment under a prior
settlement that had placed the lender on suspension for six
months.

Stevens said his agency takes its oversight role very
seriously and will move swiftly and decisively to protect
borrowers from unscrupulous lenders.

“Any lender who refuses to comply with FHA requirements
will simply no longer enjoy the privilege of participating in
FHA programs,” Stevens said in a statement.

Stock Research

(Reporting by Corbett B. Daly; Editing by Leslie Adler)

UPDATE 1-U.S. FHA disbars 4 mortgage lenders from program