RMS & Associates, Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
We audited RMS & Associates’ Federal Housing Administration (FHA) loan origination because it was one of the top lenders that originated FHA-insured loans with downpayment assistance from the City of Las Vegas. A previous U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG), audit (Evergreen Home Loans, 2016-LA-1011) found that Evergreen originated FHA-insured loans in connection with the City of…
September 28, 2017
Memorandum
#2017-LA-1803
Final Civil Action: Residential Home Funding Corp. Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ) and the U.S. Attorney’s Office for the Southern District of New York in a civil investigation of Residential Home Funding Corp. Residential Home is a Federal Housing Administration (FHA)-approved mortgage lender having its principal place of business in White Plains, NY.
On September 18, 2017,…
September 28, 2017
Memorandum
#2017-CF-1807
Final Civil Action: PHH Corporation Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ) and the U.S. Attorney’s Offices, District of New Jersey, District of Minnesota, and Southern District of Florida, in the civil investigation of PHH Corporation, PHH Mortgage Corporation (PHHMC), and PHH Home Loans, LLC (PHHHL), collectively referred to as PHH. PHH was a direct endorsement lender…
September 28, 2017
Memorandum
#2017-CF-1806
Limited Review of HUD Government Purchase Card Transactions for Fiscal Year 2017
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the HUD’s government purchase card program. We initiated the review based on our participation in a collaborative effort with other inspectors general under the direction of the Council of Inspectors General on Integrity and Efficiency (CIGIE) to issue a consolidated report to the Office of Management and Budget on government purchase card…
September 26, 2017
Memorandum
#2017-KC-0801
Interim Report on Community Development Block Grant Disaster Assistance Funds, New York, New York
May 22, 2002
Memorandum
#2002-NY-1802
Community Development Block Grant Disaster Recovery Assistance Funds, Lower Manhattan Development Corporation, New York, New York
During the eighth in our series of ongoing audits of the Lower Manhattan Development Corporation's (LMDC) administration of the $2.783 billion in Community Development Block Grant Disaster Recovery Assistance funds provided to the State of New York following the September 11, 2001, terrorist attacks on the World Trade Center in New York City, we identified a concern about whether certain activities, for which funds have been disbursed…
April 03, 2007
Memorandum
#2007-NY-0802
SecurityNational Mortgage Company, Las Vegas, NV, Improperly Originated FHA Loans for Properties With Restrictive Covenants
We audited SecurityNational Mortgage Company’s Federal Housing Administration (FHA) loan origination because it was among the top lenders that originated FHA-insured loans with downpayment assistance from the City of Las Vegas. A previous U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG), audit (Evergreen Home Loans, 2016-LA-1011) found that Evergreen originated FHA-insured loans in connection…
September 22, 2017
Memorandum
#2017-LA-1802
Venta Financial Group, Inc., Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
We audited Venta Financial Group’s Federal Housing Administration (FHA) loan origination because it was one of the top lenders that originated FHA-insured loans with downpayment assistance from the City of Las Vegas. A previous U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG) audit (Evergreen Home Loans, 2016-LA-1011) found that Evergreen originated FHA-insured loans in connection with the City…
September 20, 2017
Memorandum
#2017-LA-1801
San Sebastian Fine Arts Center, Office of the Commissioner for Municipal Affairs, San Juan, PR, State Block Grant Program
We audited the Office of the Commissioner for Municipal Affairs’ (OCMA) Puerto Rico State Community Development Block Grant program. We selected OCMA for review based on concerns regarding the slow progress of the Municipality of San Sebastian’s fine arts center. The objective of this audit was to determine whether OCMA effectively used State Block Grant funds on a fine arts center that met a national objective of the program and…
September 15, 2017
Memorandum
#2017-AT-1802
Final Civil Action: First American Mortgage Trust Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the District of Massachusetts in the civil investigation of First American Mortgage Trust. First American has its principal place of business in Brighton, MA, and does business as NXTLoan.Com Corp., a Delaware corporation. First American is the parent company of NXTL.
On October 18, 2016, First…
September 18, 2017
Memorandum
#2017-CF-1805
Final Civil Action: Prospect Mortgage, LLC, Settled Alleged Violations of Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, assisted the U.S. Department of Justice Washington D.C., and the U.S. Attorney’s Offices of the Northern District of Georgia and Northern District of California, in the civil investigation of Prospect Mortgage, LLC.
Based in part on our review, the Federal Government alleged that Prospect violated the False Claims Act when it originated and…
August 21, 2017
Memorandum
#2017-AT-1801
HUD Needs To Clarify Whether Illegal-Undocumented Aliens Are Eligible for Assistance Under the Housing Opportunities for Persons With AIDS Program
HUD OIG assisted U.S. Attorney’s Office, Southern District of New York in a civil investigation related to illegal-undocumented aliens receiving Housing Opportunities for Persons with AIDS (HOPWA) assistance. The HOPWA program at 24 CFR (Code of Federal Regulations) Part 574 is a HUD Office of Community Planning and Development (CPD) grant program that provides formula allocations and competitively awarded grants to eligible States,…
August 21, 2017
Memorandum
#2017-CF-0801
Final Civil Action: Financial Freedom, a Division of CIT Bank, N.A., Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Servicing Requirements for HECM Claims
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ), Washington, DC, and the U.S. Attorney’s Office for the Middle District of Florida in a civil investigation of Financial Freedom Acquisition, a division of CIT Bank, N.A. Financial Freedom was originally owned by IndyMac Bank until its failure in 2008, when the Federal Deposit Insurance…
August 21, 2017
Memorandum
#2017-CF-1804
Independent Attestation Review: U.S. Department of Housing and Urban Development, Office of Special Needs Assistance Continuum of Care, Regarding Drug Control Accounting for Fiscal Year 2016
We conducted an attestation review of the U.S. Department of Housing and Urban Development (HUD), Office of Special Needs Assistance Continuum of Care Program, regarding drug control accounting and associated management assertions for fiscal year 2016. The objective of our attestation review was to evaluate HUD’s financial reporting and assertions for drug control funds to determine if its reporting was in compliance with regulations…
June 19, 2017
Memorandum
#2017-FO-0802
Final Civil Action Borrower Settled Allegations of Making False Statements to HUD for a Home Purchase Under the Federal Housing Administration Mortgage Insurance Program
We received a referral from the Quality Assurance Division of the U.S. Department of Housing and Urban Development’s (HUD) Philadelphia Homeownership Center concerning a borrower who allegedly made false statements to obtain Federal Housing Administration (FHA) mortgage insurance. The borrower provided false and conflicting employment and income information, which was used in originating and obtaining an FHA loan. Further, the…
June 28, 2017
Memorandum
#2017-PH-1802
Judgment Imposed on the Former President and Founder of MDR Mortgage Corporation Regarding Allegations of Failing To Comply With HUD’s Federal Housing Administration Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), in coordination with the U.S. Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Northern District of Illinois’ Eastern Division, conducted a joint review of the former president and founder of MDR Mortgage Corporation.
MDR Mortgage provided annual verifications to HUD in 2006, 2007, and 2008, certifying that none…
March 31, 2017
Memorandum
#2017-CH-1801
Final Civil Action – United Shore Financial Services, LLC, Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, Eastern District of Michigan, in the civil investigation of United Shore Financial Services, LLC. United Shore is a Federal Housing Administration (FHA)-approved mortgage lender, with its principal place of business located in Troy, MI.
United Shore…
March 29, 2017
Memorandum
#2017-CF-1803
Monitoring of Nonbank Issuers Presents Challenges for Ginnie Mae
This briefing paper highlights challenges the Government National Mortgage Association (Ginnie Mae) faces in monitoring nonbanks and outlines our past, current, and future efforts to help it address those challenges. We are highlighting these challenges so HUD leadership is aware of and can be better prepared to address them. OIG is focusing on Ginnie Mae’s capacity to monitor nonbanks with an ongoing audit.
March 13, 2017
Topic Brief
Independent Attestation Review: U.S. Department of Housing and Urban Development, DATA Act Implementation Efforts
The Digital Accountability and Transparency Act of 2014 (DATA Act) and implementation guidance provided in the Office of Management and Budget Memorandum M-15-12 mandates that Federal agencies must report their financial, budgetary and programmatic information to the USASpending.gov web site by the statutory May 2017 deadline.
In our second of two Data Act Readiness Reviews, OIG reviewed the U.S. Department of Housing and Urban…
March 01, 2017
Memorandum
#2017-FO-0801
Final Civil Action – Security National Mortgage Company Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office for the District of New Jersey in a civil investigation of Security National Mortgage Company. Security National is a Federal Housing Administration (FHA)-approved mortgage lender with its principal place of business located in Salt Lake City, UT.
On…
March 01, 2017
Memorandum
#2017-CF-1802