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Allied Home Mortgage Corporation; Maine Supervised Lender License No. SLM1788 - Order Prohibiting the Taking of New Applications and Requiring the Orderly Transition of Pending Files
November 3, 2011
Now comes the Superintendant of the Bureau of Consumer Credit Protection (?the Bureau?) and makes the following findings and order:
WHEREAS the Bureau is a Maine state governmental regulatory agency authorized to administer and enforce the Maine Consumer Credit Code and the Funded Settlement Act; and
WHEREAS Allied Home Mortgage Corporation is a licensed Supervised Lender with a primary office at 6110 Pinemont Drive, Suite 220, Houston, Texas, and a licensed branch office in Scarborough, Maine; and
WHEREAS on November 1, 2011, the Bureau received notice that the Mortgage Review Board of the U.S. Department of Housing and Urban Development suspended the ability of Allied Home Mortgage Corporation to originate and underwrite new mortgages insured by the Federal Housing Administration (FHA); and
WHEREAS on November 1, 2011, the Bureau received notice that the Government National Mortgage Association (?Ginnie Mae?) suspended Allied Home Mortgage Corporation?s ability to issue securities in Ginnie Mae?s Mortgage-Backed Securities (MBS) program; and
WHEREAS on November 2, 2011 the Bureau received noticed that Allied Home Mortgage Corporation?s warehouse lines of credit had been frozen; that General Motor Acceptance Corporation (GMAC ) and other correspondent investors are no longer purchasing loans from Allied Home Mortgage Corporation; and that the Federal National Mortgage Association (?Fannie Mae?) has disabled Allied Home Mortgage Corporation?s online accounts; and
WHEREAS Supervised lenders are subject to 33 Maine Revised Statutes Annotated (MRSA), ? 521 et seq., the state?s Funded Settlement Act, requiring that mortgage loans to be funded prior to noon of the first business day after expiration of the rescission period required under the federal Truth in Lending Act; and
WHEREAS Maine consumers who are customers of Allied Home Mortgage Corporation are at various stages of the application, closing and funding process, and further that Allied Home Mortgage Corporation may owe funds to various contractors or utilities for services rendered;
NOW THEREFORE the Superintendent ORDERS the following:
1) Allied Home Mortgage Corporation?s Maine licenses are partially suspended, to the extent that the company may not accept any further new applications from Maine homeowners;
2) While Allied Home Mortgage Corporation has provided to the Superintendent an informal pipeline report of affected Maine consumers, the company must provide a detailed spreadsheet, listing the exact stage in the process of each application that has not been fully funded, and must update the information in that spreadsheet no less frequently than weekly; and;
3) The company must secure funding of pending applications through alternative means, at the terms and conditions agreed to, through licensed or chartered lenders or loan brokers, and it must reimburse consumers for any additional costs incurred in transferring to other lenders or loan brokers.
It is so ordered.
| Date: November 3, 2011 | /s/William N. Lund |
| William N. Lund | |
| Superintendent | |
| Bureau of Consumer Credit Protection |
NOTICE OF APPEAL RIGHTS
Any party aggrieved by this decision may appeal to the Superior Court pursuant to 9-A M.R.S.A. ?6-108(1) and 5 M.R.S.A. ?1001 et seq. within 30 days of receipt of this decision. Any other person aggrieved shall have 40 days from the date the decision was rendered to petition for review.
| Date: November 3, 2011 | /s/William N. Lund |
| William N. Lund | |
| Superintendent | |
| Bureau of Consumer Credit Protection |