Final Action Memorandum: Purchaser of HUD-Insured Single-Family Property Settled Allegations of Causing the Submission of a False Claim
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), reviewed preforeclosure sales under the Federal Housing Administration (FHA) program in the St. Louis, MO, area. We found that the purchaser of a property being sold in a preforeclosure sale entered into a consulting agreement with the realtor. The agreement required that when the purchaser later sold the property, he would pay half of the…
February 22, 2017
Memorandum
#2017-KC-1801
HUD’s Conference Spending
In response to a request from Senator Jeanne Shaheen, we compiled information from audits and investigative activities we performed that included findings or allegations regarding the U.S. Department of Housing and Urban Development’s (HUD) conference spending and related travel.
Our records showed that we performed 34 such reviews between October 1995 and January 2012. Our audit reports disclosed immaterial instances of unsupported…
August 07, 2012
Memorandum
#2012-IE-0801
Final Civil Action – Primary Residential Mortgage, Inc. 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, District of Colorado, in the civil investigation of Primary Residential Mortgage, Inc. Primary has its principal place of business in Salt Lake City, UT. Primary became an FHA-approved direct endorsement lender on October 15, 1998. The direct…
January 18, 2017
Memorandum
#2017-CF-1801
Final Civil Action Borrower Settled Alleged Violations of Home Equity Conversion Mortgage Program
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program. Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at a time. We referred…
January 05, 2017
Memorandum
#2017-PH-1801
Sons of Divine Providence Did Not Ensure That the Don Orione Home, East Boston, MA, Operated in Accordance With Its Regulatory Agreement
Sons of Divine Providence did not properly oversee the HUD-insured nursing home to ensure that it operated in accordance with its regulatory agreement. By not informing HUD of the lawsuits, the changes in management agents, and the loans, Sons of Divine Providence did not provide HUD the necessary data to understand the risk to the HUD insurance fund. However, when Sons of Divine Providence sold the nursing home and paid off the HUD-…
October 13, 2016
Memorandum
#2017-BO-1801
Branch Banking and Trust Company 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 Department of Justice, Civil Division, Commercial Litigation Branch and the U.S. Attorney’s Office of the Northern District of Georgia in the civil investigation of Branch Banking and Trust Company (BB&T).
Based in part on our review, the Federal Government alleged that BB&T violated the False Claims Act when it originated and…
September 30, 2016
Memorandum
#2016-AT-1802
Final Civil Action - Owner and Management Agents Settled Allegations of Failing To Comply With the Regulatory Agreements for Multifamily Projects Willow Run I and Willow Run II
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 Minnesota in a civil investigation of Willow Run Partners L.P. and Willow Run II Partners L.P. Willow Run Partners L.P. was the owner of Willow Run I Apartments, and Willow Run II Partners L.P. was the owner of Willow Run II Apartments. Our investigation began as a result of a referral…
September 30, 2016
Memorandum
#2016-CF-1813
Final Civil Action – Real Estate Agent and Two Borrowers Settled Allegation of Making a False Certification to HUD Regarding a Home Purchase Under the Federal Housing Administration Program
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted a civil fraud review of an alleged loan origination fraud scheme involving borrowers purchasing a home in which the loan was insured under HUD’s Federal Housing Administration (FHA) program. The alleged scheme involved the submission of a false loan application to obtain an FHA-insured loan on a home in San Diego, CA. FHA provides…
September 29, 2016
Memorandum
#2016-CF-1812
Final Civil Action – Regions Bank 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 Middle District of Florida in a civil investigation of Regions Bank. Regions Bank has its principal place of business in Birmingham, AL, and became a Federal Housing Administration (FHA)-approved direct endorsement lender in 1985. As a direct…
September 29, 2016
Memorandum
#2016-CF-1811
Final Civil Action – Permanent Claim Block Placed on Borrower’s Federal Housing Administration Loan Because It Did Not Qualify for Insurance
The Office of Inspector General (OIG) assisted the U.S. Attorney’s Office for the District of New Jersey in the investigation of Finance of America Mortgage LLC. The investigation began due to a qui tam filing in the U.S. District Court for the District of New Jersey. The relator alleged that Finance of America, through its acquisition of Gateway Funding Diversified Mortgage Services LLP, knowingly participated in a mortgage fraud…
September 29, 2016
Memorandum
#2016-CF-1809
DHI Mortgage Company Ltd., Settled Allegations of Making False Certifications Regarding Federal Housing Administration Loans
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), referred alleged violations to HUD’s Office of Program Enforcement for action under the Program Fraud Civil Remedies Act based on two audits of DHI Mortgage Company Ltd. (DHIM) that found it did not follow HUD requirements when it underwrote Federal Housing Administration (FHA)-insured loans with prohibited restrictive addenda to the…
September 29, 2016
Memorandum
#2016-LA-1802
Knox Pest Control Settled Allegations of Charging Unallowable Costs for Preservation of HUD-Owned Properties in the Federal Housing Administration Program
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) assisted the U.S. Attorney’s Office of the Northern District of Alabama in the civil investigation of Guardian Pest Services, Inc., doing business as Knox Pest Control and J.J.S.K. Solutions, Inc. Knox Pest Control has its principal place of business in Columbus, GA.
A HUD home is a one-to-four unit residential property acquired by HUD as a…
September 29, 2016
Memorandum
#2016-CF-1810
Final Civil Action: Wells Fargo Bank, N.A., Settled Allegations of Failing To Comply With HUD’s FHA Underwriting Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice and the U.S. Attorney’s Office, Southern District of New York and Northern District of California, in conducting an investigation of Wells Fargo Bank, N.A.’s origination and underwriting of mortgage loans insured by the Federal Housing Administration (FHA).
Based in part on our review, the United States…
September 28, 2016
Memorandum
#2016-KC-1803
Final Civil Action: Shea Mortgage, Inc., Settled Allegations of Making False Certifications Regarding Federal Housing Administration Loans
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), OIG referred alleged violations to HUD’s Office of Program Enforcement for action under the Program Fraud Civil Remedies Act based on an audit of Shea Mortgage that found it did not follow HUD requirements when it underwrote loans that had executed and recorded agreements containing prohibited restrictive covenants. HUD’s Office of Program…
September 28, 2016
Memorandum
#2016-LA-1801
American Midwest Mortgage Corporation Settled Allegations of Failing To Comply With Federal Housing Administration Underwriting Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted HUD’s Office of Program Enforcement in the civil investigation of American Midwest Mortgage Corporation. American’s principal place of business is located in Cleveland, OH. American became an FHA-approved direct endorsement lender on August 28, 1983. The direct endorsement lender program authorizes private-sector mortgage lenders…
September 23, 2016
Memorandum
#2016-CF-1808
Final Action Memo: Agent-Broker of HUD-Insured Single-Family Property Settled Allegations of Making a False Certification on a Preforeclosure Sale Closing Worksheet
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), reviewed preforeclosure sales under the Federal Housing Administration (FHA) program in the St. Louis, MO, area. We found that the realtor for the preforeclosure sale entered into a consulting agreement with the purchaser of the property. The agreement required that when the purchaser later sold the property, he would pay half of the net…
September 21, 2016
Memorandum
#2016-KC-1802
Final Action Memo: Agent-Broker of HUD-Insured Single-Family Property Settled Allegations of Making a False Certification on a Preforeclosure Sale Closing Worksheet
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), reviewed preforeclosure sales under the Federal Housing Administration (FHA) program in the St. Louis, MO, area. We found that a realtor purchased a property in January 2010 using a limited liability company he controlled while also acting as the seller’s agent.
On October 23, 2015, HUD served a complaint on the realtor, alleging that he…
September 21, 2016
Memorandum
#2016-KC-1801
The Alphabet Group, LLC, Marks Group, LLC, and Imagineers, Inc., Settled Allegations Related to Section 8 Rent Certifications
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 Connecticut in the civil investigation of The Alphabet Group, LLC, Marks Group, LLC, and Imagineers, Inc. Alphabet and Marks are owners of residential housing in Hartford, CT, and Imagineers administers the Section 8 program for the City of Hartford Housing Authority.
On May 17, 2012,…
September 19, 2016
Memorandum
#2016-CF-1807
M&T Bank 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, Western District of New York, in the civil investigation of Manufacturers and Traders Trust Company, also known as M&T Bank. M&T Bank has its principal place of business in Buffalo, NY. On March 19, 2013, a former employee of M&T Bank filed…
September 19, 2016
Memorandum
#2016-CF-1804
Land Home Financial Services, Inc. Settled Alleged Violations of Failing To Comply With Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the Office of Program Enforcement in the investigation of Land Home Financial Services, Inc. to determine whether it violated HUD requirements when underwriting loans insured by the Federal Housing Administration (FHA). Land Home is an FHA mortgage lender, located in Concord, CA. Based in part on OIG’s review, HUD contends that…
September 19, 2016
Memorandum
#2016-CF-1805