American Investment Mortgage's FHA approval authority has been suspended for five years for operating branch offices under an improper branch network and allowing a branch office to submit loans before being approved to originate FHA loans.
Other sanctioned operations are American SkyCorp Inc., Timonium, MD; Assurety Mortgage Group Inc., Decatur, GA; DMR Financial Services Inc., Farmington Hills, MI; National Charter Mortgage Corp., Gardena, CA; SMN Mortgage Corp., Rio Piedras, PR and Twins Inc., Columbia, SC.
The most severe levy has been placed against the MD-based American SkyCorp., which is being fined $220,000 and facing a five-year FHA revocation. According to HUD, the operation has failed to ensure that borrowers qualify for FHA-insured mortgages.
The sanctions represent the most serious that have been meted out by HUD's Mortgage Review Board in the past three months, with fines totaling $486,000. In the past two years, the HUD review board has sanctioned 98 lenders, resulting in a $22.5-million savings through penalties and indemnified loans.
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