The Department of Housing and Urban Development has rolled out an automated lender monitoring system know as "Credit Watch" that will target problem Federal Housing Administration lenders."Credit Watch will identify lenders in the FHA program with problems and will allow us to remove the worst performers -- in the same way a school can expel a student who flunks out," HUD Secretary Andrew Cuomo said. Credit Watch focuses on FHA lender branch offices, which are originating loans with high default and claim rates during the first 24 months of the loan's life. Branch offices with default and claim rates three times the area average will be notified of their termination and right to appeal. Twenty to 30 lenders are expected to receive the first termination letters in June. Lenders with default and claims rates about two times the norm will be placed on Credit Watch and under probation for 18 months. These lenders can still originate loans, but they will be closely monitored. "HUD is doing what it needs to do in order to police the quality of loans that it insures," said Steve O'Connor, senior director for residential finance at the Mortgage Bankers Association of America. HUD's website address is http://www.hud.gov.
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The Chicago-area lender, which at first was able to get the suit quashed, agreed to end the discrimination case by paying a $105,000 fine.
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The wholesale lender filed a motion to dismiss the case, or at least to strike the class action certification in mid-October.
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Remax, the real estate brokerage and mortgage broker franchisor of Motto Mortgage, rebounded from a year ago loss in a tough news cycle for both its businesses.
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Economists cautioned that October's employment report may not provide a fully accurate representation of the economy due to recent hurricanes.
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HomeStreet and FirstSun are working to devise a new formula after the Texas Department of Banking and the Federal Reserve declined to approve their merger application.
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Former Treasury Secretary Steven Mnuchin and his investment firm Liberty Strategic Capital are seeking to more than double his indirect ownership stake of Flagstar Financial — formerly New York Community Bank — to 22.9%, according to filings obtained by American Banker.
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