We reviewed Federal Housing Administration (FHA)-insured home equity conversion mortgages (HECM) loans originated by First Call Mortgage Company and sponsored by James B. Nutter & Company (J.B.Nutter) during the period of January 2007 to December 2008. We reviewed these loans because in September 2008 state banking regulators from New Hampshire and Massachusetts found that First Call used deceptive business practices and did not have the proper state licensing to originate reverse mortgages. As a result, we wanted to determine if any FHA HECM loans originated by First Call were adversely affected.

The primary purpose of our review was to determine whether J. B. Nutter acted in a prudent manner and complied with the Department of Housing and Urban Development's (HUD) regulations, procedures, and instructions for the underwriting and closing of FHA-insured HECM loans.

J. B. Nutter acted in a prudent manner and complied with the HUD's regulations, procedures, and instructions for the underwriting and closing of FHA-insured HECM loans selected for review.

This report contains no formal recommendations, and no further action is necessary.