SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) June 7, 1996
MARKET DATA CORP.
(Exact name of registrant as specified in its charter)
TEXAS 33-22264-FW 76-0252235
(State or jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
14505 TORREY CHASE BLVD. SUITE 410, HOUSTON, TX 77014
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 586-8686
Item 5. Other Items
Market Data Corp's wholly owned subsidiary Renet Financial
Corporation was found to be in violation of several Department of
Housing & Urban Development (HUD) requirements during a recent
annual audit performed by HUD.
See attached news release (Exhibit A) dated June 7, 1996, for
additional details.
Signatures
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
Market Data Corp.
(Registrant)
6/7/96 Steven C. Naremore
Date (Signature)
6/7/96 Janice S. Whalen
Date (Signature)
Contacts: Market Data Corp.
Steve Naremore
(713) 586-8686
Renet Financial Corp.
Phil LaPuma
(714) 288-5900
NEWS:
FOR IMMEDIATE RELEASE
RESULTS OF RENET'S ANNUAL HUD AUDIT
Houston, Texas, June 7, 1996--- Market Data Corp.(MDC) announced
today that an annual audit performed by the Department of Housing and
Urban Development (HUD) of its recently acquired Renet Financial
Corporation (RENET) subsidiary, found the following violations of
HUD-FHA requirements: 1) failure to implement and maintain an
adequate Quality Control Plan for the origination of HUD-FHA insured
mortgages; 2) failure to comply with HUD report requirements under
the Home Mortgage Disclosure Act for the year 1994; 3) failure to
remit up front mortgage insurance premiums to HUD within 15 days from
the date of loan closing and failure to remit late charges and
interest penalties; 4) failure to submit loans to HUD for
endorsement in a timely manner; 5) use of MIP funds to close HUD-FHA
insured mortgages; 6) failure to report to HUD that Renet had
suffered a loss of more than 20 percent of its net worth
in 1994 and, 7) failure to document the sources of funds used to
close insured mortgages.
On May 28, 1996, Renet received notice from the Department of Housing
and Urban Development that their authority to lend through HUD-FHA
loan programs has been withdrawn for a period of three years due to
violations of HUD regulations. In addition, HUD has proposed to seek
$50,000 in civil penalties. The company has 30 days in which to seek
a hearing to review these finding and will do so in an effort to have
these penalties reduced.
For the fiscal year ending June 30, 1995, total loans originated
under the FHA Title II program suspended by HUD was $5,179,710 and
gross loan origination fees from the origination of such
loans was $200,614 (5.3% of total gross loan origination fees). For
the nine months ending March 31, 1996, total loans originated under
the FHA Title II program suspended by HUD was $8,984,631 and gross
loan origination fees from the origination of such loans was $279,756
(16.1% of total gross loan origination fees).
Founded in 1988, RENET is a unique franchisor of financial services
to real estate brokerages, builder / developers, financial planners
and tax preparers who want to provide mortgage and consumer loans,
insurance and securities services to their clients. RENET markets
mortgage franchisees and had a loan volume in excess of $206 million
in calendar 1994.
Based in Houston, Texas, Market Data Corp. markets and distributes
financial information systems, related software, and daily text
services throughout the U.S. and Canada. Market Data Corp. stock
trades publicly on the NASDAQ Bulletin Board under the symbol MADA.
