Dallas-based mortgage lender ""AmericaHomeKey"":http://www.americahomekey.com/ (AHK) can no longer do business with the FHA due to repeat violations of FHA requirements, HUD's Mortgagee Review Board (MRB) announced Friday.
[IMAGE] [COLUMN_BREAK]AHK will no longer originate and underwrite new mortgages insured by the FHA, and the MRB is imposing $268,000 in penalties.
""When we begin to see a pattern of failure to apply our standards, we will act to protect FHA's financial health as well as consumers,"" said Acting FHA Commissioner Carol Galante. ""We expect lenders to meet our requirements, not just to protect the safety of our insurance fund but to make certain they don't set up borrowers to fail by putting them into mortgages they ultimately can't sustain.""
A release from HUD stated more than a dozen violations of FHA standards were found. Violations included failure to adequately document the source of a borrower's funds used for closing, failure to correctly calculate a borrower's income, failure to verify income, and charging borrowers unallowable fees, among other issues.