Feds taking action against reverse mortgage lender

HONOLULU (AP) - The U.S. Department of Housing and Urban Development is taking action against a reverse mortgage lender in Hawaii.

HUD's Mortgagee Review Board wants to permanently withdraw the HUD/Federal Housing Administration approval of Financial Mortgage USA Inc.

HUD said Friday that among other things, the board alleges the company failed to implement an FHA-required quality control plan and separate its lending operations from those of its affiliated insurance company.

In addition, the board is imposing the maximum $97,500 civil penalty available against Financial Mortgage USA.

Efforts to reach the company for comment failed because its telephone was disconnected.