First 15 Banks That HUD Accounts for High Claims Rate for FHA Loans

Yesterday, The Truth About Mortgage lists the first 15 Banks in America that have received a subpoena for a high claims rate on their FHA mortgages. These banks were recognized first because of their high number of failed loans that resulted in the FHA mortgage insurance fund to be debited.
TheTruthAboutMortgage.com quoted Inspector General Kenneth M. Donohue saying, “The goal of this initiative is to determine why there is such a high rate of defaults and claims with these companies and whether there is wrongdoing involved”.
Between the fallout list on America’s renown Imploded-O-meter , and the number of banks that have been brought under indictment by the federal government, and the mergers of major banks, Americans had started to think that the surprises within this industry were over. Maybe this is a sign of, “oh contrar mo frar“.
The Inspector General did say that they have no evidence in this situation of 15 targeted lenders, but if this story/investigation follows in the footsteps of other investigations that have become the long arm of the law, and literally reached into the deep pockets of America’s lending establishments that were figured to have deeper roots than a 100 year old Red Wood, OH there will be casualties!
To read more on this list of banks, go directly to the source that I picked it from. http://www.thetruthaboutmortgage.com.
Below is the list of banks that were served subpoenas:
These lenders and banks are not guilty and there is no hard evidence to say that they have done anything wrong. HUD has only “smelt smoke” and is doing it’s investigation to see if there truly is a “fire”.
The following companies were served subpoenas today:
First Tennessee Bank N.A., Memphis, TNAlethes LLC, Lakeway, TXSecurity Atlantic Mortgage Co., Edison, NJPine State Mortgage Corporation, Atlanta, GABirmingham Bancorp Mortgage Corporation, West Bloomfield, MIAlacrity Financial Services, LLC, Southlake, TXAssurity Financial Services, LLC, Englewood, COD and R Mortgage Corporation, Farmington, MIWebster Bank, Cheshire, CTMac-Clair Mortgage Corporation, Flint, MIAmericare Investment Group, Inc., Arlington, TX1st Advantage Mortgage, Lombard, ILAmerican Sterling Bank, Independence, MOSterling National Mortgage Company Inc., Great Neck, NYDell Franklin Financial LLC, Columbia, MD