Hello neighbors,

According to recent reports, 15 mortgage companies were subpoenaed by HUD (Department of Housing and Urban Development) this week to determine why they possessed such a high number of problems with FHA - insured mortgages.

The companies subpoenaed were required to turn over documents and data pertaining unsuccessful loans that required claims paid out by the Federal Housing Administration’s mortgage insurance fund. The purpose is to find out if there is any wrongdoing on behalf of the 15 companies.

Since the recent recession and its affect on customary lending, the FHA has gained a larger roll in the mortgage market. Therefore, the 3% of market activity the FHA had three years ago has increased to 25% of market activity today.

The 15 companies have not been found guilty of any wrongdoings but each unsuccessful loan will be carefully examined.

List of companies that were subpoenaed include:

-First Tennessee Bank N.A., Memphis, Tenn.
-Alethes LLC, Lakeway, Texas
-Security Atlantic Mortgage Co., Edison, N.J.
-Pine State Mortgage Corporation, Atlanta.
-Birmingham Bancorp Mortgage Corporation, West Bloomfield, Mich.
-Alacrity Financial Services, LLC, Southlake, Texas
-Assurity Financial Services, LLC, Englewood, Colo.
-D and R Mortgage Corporation, Farmington, Mich.
-Webster Bank, Cheshire, Conn.
-Mac-Clair Mortgage Corporation, Flint, Mich.
-Americare Investment Group, Inc., Arlington, Texas
-1st Advantage Mortgage, Lombard, Ill.
-American Sterling Bank, Independence, Mo.
-Sterling National Mortgage Company Inc., Great Neck, N.Y.
-Dell Franklin Financial LLC, Columbia, Md.

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