70 Where such mortgages have been foreclosed and Advance is found to have made a substantial misstatement on origination forms, Advance must again accept reconveyance and reimburse HUD for its losses. 71 Letter from James B. Thomas, Jr. to David S. Cook dated February 4, 1976 and made a part of the minutes of the Mortgagee Review Board Meeting March 4, 1976. The letter also informed the Chairman of scheduled OIG on-site reviews in March and May of the four previously audited Advance offices and three other offices. 72 Interview with John Kennedy, Office of the General Counsel, December 15, 1976. 73 For example, after Advance's probation ended, no HUD officials monitored its activities. According to the Inspector General, this passivity was a conscious decision Advance had been checked and found improving. Now they "deserved a break." Interview with James L. Thomas, Jr. and John Yazurlo, March 17, 1977. 74 OIG Audit Case No. PH-94. From 1972 to 1976, HUD personnel audited nine different offices of Lomas & Nettleton. 75 This figure is based on the length of meetings, recorded in all but five of the minutes. 76 HUD Handbook IG 4000.3, Audit Guide for Audits of HUD-Approved Nonsupervised Mortgagees for Use by Independent Public Accountants, effective fiscal years ending subsequent to April 30, 1977, requires these reports which are to cover origination and servicing practices as well as financial data. 77 U.S. Department of Housing and Urban Development, Housing in the Seventies, p. 3-35. 79 Peter L. Maier, Courtland J.W. Troutman and Thomas H. Stanton, More Holes Than Net, (Washington, D.C.: Center for Study of Responsive Law, July 1977), p. i. 80 U.S. Department of Housing and Urban Development, HUD News No. 77-237, July 27, 1977, p. 2. 81 Saul B. Klamans, The Post-War Rise of Mortgage Companies. 82 U.S. Congress, Housing and Community Development Act of 1977: Title VIII Community Reinvestment, 95th Cong., 1st sess., Sept. 26, 1977, Congressional Record, Vol. 123, no. 151, p. H1108. 83 Brimmer & Company, Inc., Risk vs. Discrimination in the Expansion of Urban Mortgage Lending, (Chicago, Illinois: United States League of Savings Associations, April 1977), p. 64-68. 84 Sax, "Licenses Restricting Private Rights In Public Resources," Vol. 7, Nat. Res. J., 1967, p. 339. 85 See, e.g. Federal Trade Commission Act, 15 U.S.C. § 45 (b) (1964); Clayton Act, 15 U.S.c. § 21(b) (1) (1964). 86 A. Rosenthal, "Federal Power to Preserve the Environment: Enforcement and Control Techniques," in Grad, Rathjens, Rosenthal, Environmental Control: Priorities, Policies and the Law, (1971), p. 237. 87 U.S. Department of Housing and Urban Development, Office of Assistant Secretary for Fair Housing and Equal Opportunity, Redlining and Disinvestment as a Discriminatory Practice in Residential Mortgage Loans, by Calvin Bradford and Dennis Marino, 1976, p. 177. SELECTED BIBLIOGRAPHY Books Boyer, Brian D. Cities Destroyed for Cash: The FHA Company, 1973. Klaman, Saul B. The Post-War Rise of Mortgage Companies. Mortgage Bankers Association. Mortgage Banking 1975: Mortgage Banking 1975: Loans Closed and Servicing Pease, Robert H. and Kerwood, Lewis 0. Mortgage Banking. Starr, Roger. Housing and the Money Market. Wolman, Harold. Politics of Federal Housing. New York: New York: Articles DeHuszar, William, CMB. "Anatomy of Management Failure." The Mortgage Banker, February 1977, p. 51-58. Dinkins, Warren 0. "Quality Loan Servicing Is Industry Seller/Servicer, January 1976, p. 2-4. Challenge. Gottlieb, Bob and Hubbard, Burt. "The Strange Doings (and Strange Friends) of Mechanics Bank." Los Angeles, October 1976, p. 84-102. Hood, Edwin T. and Kushner, James A. "Real Estate Finance: The Discount Point System and Its Effect on Federally Insured Home Loans." 40 U.M.K.C. Law Review 1 (1971). Articles, Cont. Knowlton, Robert D. "Mortgage Bankers Need Cautious Banker, October 1975, p. 53-63. 11 " Mower, Richard L. "Low Origination Fee Is Insurmountable McPherson, Garland. "Analyzing the Mortgage Banker." Journal of Commercial Bank Lending, July 1972, p. 53-60. Rhoades, Stephen A. "The Effect of Bank-Holding-Company Acquisitions of Mortgage Bankers on Mortgage Lending Activity." Journal of Business, July 1975, p. 344-348. Soaring Servicing Costs Add to Origination The Williams, Peter M. Coinsurance." "Trial Run Begins for FHA Single-Family The Mortgage Banker, May 1976, p. 28-38. Greenston, Peter M., MacRae, C. Duncan and Pedene, Carla I. The Effects of FHA Activity in Older, Urban, Declining Areas: A Review of Existing, Related Analysis. Washington, D.C.: Urban Institute, 1975. Maier, Peter L., Troutman, Courtland J.W., and Stanton, Center for Study of Responsive Law, 1977. Metropolitan Area Housing Alliance (MAHA). Criticisms and Recommendations for Punitive Actions On Mortgage Lenders. Chicago, Illinois: MAHA, 1975. Murphy, Margaret L., Krajcovic, Ellen and Blumberg, Catharyn. National Training and Information Center (NTIC). The NTIC, 1976. Urban-Suburban Investment Study Group. The Role of Mortgage Lending Practices in Older Urban Neighborhoods. Evanston, Illinois: Center for Urban Affairs, Northwestern University, 1975. Illinois (State of). Illinois Legislative Investigating United States Congress. House. Committee on Banking, 1976. House. Committee on Government Operations. Defaults on FHA-Insured Home Mortgages Detroit, Michigan Fifteenth Report. 92nd Cong., 2nd sess., 1972. House. Committee on Government Operations. Mortgage Servicing and HUD Property Management. 94th Cong., 1st sess., 1975. House. Committee on Government Operations. Reducing Losses Through Improved Mortgage Servicing Twentieth Report. 94th Cong., 2nd sess., 1976. Senate. Committee on the Judiciary. Competition in Real Estate and Mortgage Lending. 92nd Cong., 2nd sess., 1972. |