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FHA axes two mortgage lenders

HUD also secures $628,387 in civil penalties

The Federal Housing Administration permanently withdrew its approval of two mortgage lenders it alleged submitted false information, the U.S. Department of Housing and Urban Development announced Thursday. HUD's Mortgagee Review Board, charged with ensuring lenders' compliance with FHA/HUD regulations, accused Atlanta, Ga.-based RSA Financial Inc. of submitting "false and/or misleading information regarding the criminal conviction and sanction history of its owner and executive, Ramsey Suphi Agan." HUD issued the lender a Notice of Violation on Dec. 4. Specifically, RSA's application for lender approval allegedly misled HUD to believe that RSA was properly licensed by the Georgia Department of Banking and Finance and that no company officials had ever been "debarred, sanctioned, fined, convicted, denied approval, or refused a license by any state, federal or local government agency." According to the housing agency, the lender neglected ...