The Federal Housing Administration’s Mortgagee Review Board announced today that it will punish 240 FHA-approved lenders who failed to meet its requirements, including five from New York City.
The New York lenders who will be reprimanded are Syamni Funding, Health Care Funding Company, Gotham City Mortgage, NRF Funding and Tristar Mortgage.
Sanctions include probations, suspensions and civil money penalties, the FHA announced today. For particularly serious violations, the board can even withdraw a lender’s FHA approval, barring him or her from participating in FHA programs.
“It’s never been more important that lenders doing business with FHA apply our standards to each and every loan they originate and underwrite,” said Acting FHA Commissioner Carol Galante. “FHA requirements ensure homeowners are put on a path of sustainable homeownership and that ultimately helps stabilize entire neighborhoods and communities.”
The MRB is no stranger to administrative action. Since 2009, it has punished more than 2,300 lenders, including a record 1,600 in 2010.
All administrative actions are published after appeals are exhausted and final decisions can be announced. — Russell Steinberg