HUD suspends mortgage lender over false financial statements

by 17 Jul 2017
by Krizzel Canlas

Pennsylvania-based mortgage lender Seckel Capital has been suspended by the Department of Housing and Urban Development’s (HUD’s) Mortgagee Review Board (MRB) from originating and underwriting new mortgages insured by the Federal Housing Administration, the agency said in a statement.

HUD said that owner John Seckel was suspended from doing business with the Federal government. HUD’s investigations revealed that Seckel and his company knowingly and fraudulently submitted false financial statements to the government certifying they were audited by an independent accounting firm when, in fact, they were not.

According to HUD, the action against Seckel and his company is the result of the department’s ongoing effort to hold the mortgage industry accountable for the loans they originate, underwrite and/or service.

Apart from reviewing cases of false statements and certifications, the MRB also probes lenders who knowingly and materially violate HUD of Federal Housing Administration program statutes, regulations, and handbook requirements.

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