R&G's HUD/FHA Status Withdrawn

R&G Financial Corp., San Juan, Puerto Rico, has reported that its status as a HUD/FHA-approved lender has been withdrawn by the Department of Housing and Urban Development because of R&G's failure to submit timely audited financial statements.As a result, R&G said it is currently unable to originate loans insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. The company said its subsidiary R&G Mortgage will file an appeal with HUD, and its subsidiary R-G Premier Bank will apply to be licensed as a HUD/FHA-approved lender. "As a licensed bank lender, R-G Premier would not be subject to the audited financial statement requirements applicable to R&G Mortgage," R&G said. The company also reported that it has received "notice of non-objection" from the Federal Reserve Bank of New York and the Federal Deposit Insurance Corp. to "engage in what amounts to the last of its 'unwinding' transactions with other Puerto Rican financial institutions resulting from the restatement of its audited consolidated financial statements." R&G can be found on the Web at http://www.rgonline.com.