National City to pay $4.6 for HUD violations

Beleaguered lender National City Mortgage must pay $4.6 million in fines to HUD for falsely certifying home loans for FHA insurance under the FHA"s "late endorsement loan" provision. The provision allows direct endorsement FHA lenders to endorse loans for FHA insurance after 60 days from the closing. A loan is eligible for the late endorsement if the lender certifies that the borrower has not been delinquent between the time the loan was closed and the date of the insurance endorsement request. National City submitted 58 loans for late endorsement that were falsely certified. From the press release on the fine: HUD regulations require that the lender make certain certifications to the Federal Housing Administration (FHA) when it is submitting loans for insurance coverage more than 60 da