Tennessee Lender Agrees to $70 million Settlement to Resolve Alleged FHA Violations. Franklin American Mortgage of Franklin, TN, has agreed to pay the federal government $70 million to resolve allegations of failing to comply with FHA requirements. Specifically, the direct endorsement lender allegedly engaged in improper underwriting of FHA loans between Jan. 1, 2006, and Dec. 31, 2012, which later resulted in submission of claims and substantial losses to the FHA insurance fund. Franklin entered into a settlement agreement with the Department of Justice and the Department of Housing and Urban Development’s Inspector General. As part of the settlement, Franklin acknowledged “it engaged in certain conduct in connection with its origination, underwriting, and quality control of certain single-family residential mortgage loans insured by FHA.” The settlement was neither an admission of ...
Candidate Clinton noted: “But when community banks and credit unions offer mortgages, they’re looking to invest in their neighborhoods and communities to help them grow and prosper…”
Bank and thrift holdings of first-lien mortgages increased by 2.4 percent in the second quarter of 2016, according to an Inside Nonconforming Markets analysis of bank and thrift call reports. The holdings were boosted by jumbo mortgages, with few of the loans being delivered into mortgage-backed securities. Banks and thrifts held $1.90 trillion in first liens as of the end of June, up $44.22 billion from the end of March. Some $101.00 billion in jumbos were ... [Includes one data chart]
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