Articles

U.S. Resolves Civil Fraud Suit Against Melville-Based Mortgage Lender

Robert L. Capers, United States Attorney for the Eastern District of New York, Christina D. Scaringi, Special Agent in Charge, North East Region, Office of the Inspector General for the Department of Housing and Urban Development, and Jay N. Lerner, Inspector General for the Federal Deposit Insurance Corporation announced the settlement of claims against Franklin First Financial, Ltd., its Chief Executive Officer, Frederick Assini, its Chief Operating Officer, Christopher Bertman, and Andrew Dauro, a manager of the company. The case, United States v. Rainy Day Holdings, LLC. et al., Civil Action No. CV-15-5576 is pending in federal court in Central Islip, NY before United States District Judge Joseph F. Bianco.

Franklin First, Assini, Bertman, and Dauro participated in the Direct Endorsement Program, a United States Department of Housing and Urban Development (HUD) program that allowed Franklin First to make mortgage loans which were insured by the Federal Housing Administration (FHA) in the event of default. If the FHA determined that Franklin First’s mortgages defaulted within the first two years at a rate 100% or higher than other lenders within the same geographic region, the FHA could have audited, immediately suspended, or sought to permanently remove Franklin First from the Direct Endorsement Program. As alleged in the government’s complaint, the defendants made surreptitious mortgage payments for borrowers on at least one hundred eleven FHA-insured loans that otherwise would have become delinquent or gone into default within two years of origination by Franklin First. As a result, the defendants deprived HUD of critical loan performance information needed to determine whether Franklin First should remain eligible for participation in the Direct Endorsement Program...


We strive to be Georgia’s preeminent source for information and education about fraud, quality control and compliance between industry professionals and residential communities in real estate and residential financial transactions. We Lead The Cause.  We Do It Right.  We Are One.
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From time to time GREFPAC may share information with its members, for informational or educational purposes, of which GREFPAC is not the originating source.  In such instances, the information shared may include links or references to other websites, organizations, programs, or entities.  Inclusion of such links or references by GREFPAC does not constitute an endorsement by GREFPAC. 

Plan for QC Success in 2017 with Integrated Action Planning


Article presented by Phil McCall, COO mortgage quality control and audit technology provider ACES Risk Management Corp. (ARMCO)

With a new year comes new opportunities to start fresh. Now is the time for lenders to formulate a plan for loan quality success, and that plan starts, oddly enough, with a plan--an integrated corrective action plan, that is.

Regular quality control audits and corrective action planning are two  major components of Fannie Mae's Loan Quality Initiative, yet for many lenders, the systems through which they manage each of these elements are bifurcated, making it difficult to create a feedback loop to determine the effectiveness of corrective actions taken based on reporting results.

So what does this look like in action? Consider the follow scenario: Read More


We strive to be Georgia’s preeminent source for information and education about fraud, quality control and compliance between industry professionals and residential communities in real estate and residential financial transactions. We Lead The Cause.  We Do It Right.  We Are One.
Join Us For Our Annual Conference March 7, 2017. More details and Registration at www.grefpac.org
_______________________________
From time to time GREFPAC may share information with its members, for informational or educational purposes, of which GREFPAC is not the originating source.  In such instances, the information shared may include links or references to other websites, organizations, programs, or entities.  Inclusion of such links or references by GREFPAC does not constitute an endorsement by GREFPAC.