FHA suspends OKC and Claremore lenders

Federal Housing Administration's Mortgagee Review Board permanently withdraws FHA approval of Oklahoma City-based Strategic Mortgage Corporation and Claremore-based ProMortgage Inc.

Additionally, the MRB withdrew approval of Americare Investment Group Inc. — doing business as Premier Capital Lending — and suspended the FHA approval of Home Mortgage Inc.

"FHA takes its oversight role very seriously and will move swiftly and decisively to protect borrowers from unscrupulous lenders," said FHA Commissioner David Stevens. "Any lender who refuses to comply with FHA requirements will simply no longer enjoy the privilege of participating in FHA programs."

Today's withdrawal actions will permanently prevent Strategic and ProMortgage from participating in FHA programs.

The MRB took these actions based upon the following serious violations of FHA requirements:

Strategic failed to comply with employment requirements, charged borrowers impermissible or excessive fees, failed to disclose all fees on the Good Faith Estimates and submitted a false certification to HUD in connection with an application for FHA insurance.

The MRB also voted to seek civil a monetary penalty from Strategic in the amount of $71,000.

ProMortgage failed to adopt and maintain a Quality Control Plan, failed to perform Quality Control reviews of loans that went into default within six months after closing, engaged in a prohibited branch arrangement, made false certifications on the HUD/VA Addendum to the Uniform Residential Loan Application, failed to comply with home office operation requirements and failed to report employee compensation on the appropriate form.

In addition, the Company allowed borrowers to provide verification of employment directly to the lender, which creates an opportunity for manipulation or falsification of documents submitted. Verification of employment must be submitted directly to the lender by the employer.

The MRB also voted to seek a monetary penalty from ProMortgage in the amount of $124,000.