Freedom Mortgage 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, Washington, DC, and the U.S. Attorney’s Office, District of New Jersey, in the civil investigation of Freedom Mortgage Corporation. Freedom has its principal place of business in Mount Laurel, NJ, and became an FHA-approved direct endorsement lender in 1993. As a direct endorsement lender…
September 19, 2016
Memorandum
#2016-CF-1806
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…
September 19, 2016
Memorandum
#2016-CF-1805
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…
September 19, 2016
Memorandum
#2016-CF-1804
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
Final Civil Action: The City of Malakoff Housing Authority’s Prior Executive Director Improperly Hired and Contracted With Family Members
We reviewed the Malakoff Housing Authority, Malakoff, TX. The review was part of a joint initiative between the HUD Office of Inspector General’s Office of Audit and Office of Investigation. We completed the review and referred the former executive director’s improper use of Authority funds by hiring and contracting with family members to HUD’s Office of Program Enforcement for action under the Program Civil Fraud Remedies Act of 1986…
September 13, 2016
Memorandum
#2016-FW-1803
Final Civil Action: RANlife, Inc., Settled Allegations That It Violated the False Claims Act When Originating, Underwriting, and Endorsing Certain Loans With Federal Housing Administration Insurance
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) investigated alleged violations of Federal Housing Administration (FHA) regulations by RANlife, Inc. We reviewed the single-family FHA loan files processed by RANlife to determine whether it complied with HUD’s rules and regulations in originating, underwriting, and endorsing the loans for FHA insurance.
On November, 23, 2015, RANlife…
September 12, 2016
Memorandum
#2016-DE-1802
Final Civil Action: City First Mortgage Services, LLC, and Van Wagoner Investment Company Settled Allegations of Making False Certifications
Based on a request from the Assistant U.S. Attorney’s Office in Salt Lake City, UT, we provided information about single-family lenders with high default rates. We then reviewed the available case binders for 38 loans for which the Federal Housing Administration (FHA) had paid claims that were underwritten by City First Mortgage Services, LLC. We completed the review and referred alleged violations to the U.S. Department of Housing…
September 12, 2016
Memorandum
#2016-SE-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. …
September 09, 2016
Memorandum
#2016-PH-1802
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 contrary to program residency requirements, 37 borrowers did not live in the property associated with the loan and were renting the property to participants in HUD’s Section 8 Housing Choice Voucher program. Renting the properties to Section 8 program participants violated…
September 09, 2016
Memorandum
#2016-PH-1803
Final Audit Memorandum on "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. …
September 09, 2016
Memorandum
#2016-PH-1804
Franklin American 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, District of Colorado, in the civil investigation of Franklin American Mortgage Company. Franklin American has its principal place of business in Franklin, TN. Franklin American became an FHA-approved direct endorsement lender in 1995. …
September 08, 2016
Memorandum
#2016-CF-1801
Pilgrim Village Settled Allegations of Making Unauthorized Distributions and Improper Disbursements of Multifamily Project Funds
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the Western District of New York in the civil investigation of Pilgrim Village Associates, L.P.; North-Ellicott Management, Inc.; and Trammell Property Management (Pilgrim Village). Pilgrim Village Associates, L.P., was the owner of Pilgrim Village Apartments, a 90-unit multifamily housing development…
September 08, 2016
Memorandum
#2016-CF-1802
Cunningham and Company 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), investigated Cunningham and Company to determine whether it violated HUD requirements when underwriting loans insured by the Federal Housing Administration (FHA). Cunningham is an FHA mortgage lender, formerly located in Greensboro, NC. Based on OIG’s review, HUD contends that Cunningham may be liable under the Program Fraud Civil…
September 08, 2016
Memorandum
#2016-CF-1803
Final Civil Action: The City of Brackettville Housing Authority's Prior Executive Director Improperly Used Authority Funds for Personal Expenses
We reviewed the City of Brackettville Housing Authority, Brackettville, TX. The review was part of a joint initiative between the HUD Office of Inspector General’s (OIG) Office of Audit and Office of Investigation. We completed the review and referred the former executive director’s improper use of Authority funds for personal expenses to HUD’s Office of Program Enforcement for action under the Program Civil Fraud Remedies Act of 1986…
September 06, 2016
Memorandum
#2016-FW-1802
Independent Attestation Review: U.S. Department of Housing and Urban Development, DATA Act Readiness Review
The Digital Accountability and Transparency Act of 2014 (DATA Act), and implementing guidance provided in the Office of Management and Budget Memorandum M-15-12, is a mandate that Federal agencies must follow to report their financial, budgetary and programmatic information to the USASpending.gov web site. We have reviewed the U.S. Department of Housing and Urban Development’s (HUD) compliance efforts as of July 15, 2016. …
August 26, 2016
Memorandum
#2016-FO-0802
The District of Columbia Housing Authority, Washington, DC, Did Not Always Make Payments for Outside Legal Services in Compliance With Applicable Requirements
We conducted a review of the District of Columbia Housing Authority’s payments for outside legal services in conjunction with an ongoing internal audit of the U.S. Department of Housing and Urban Development’s (HUD) oversight of public housing agencies’ expenditures for outside legal services. Our review objective was to determine whether the Authority made payments for outside legal services in compliance with applicable…
April 04, 2016
Memorandum
#2016-PH-1801
The Owner of a HUD-Insured Multifamily Property Settled Proposed Debarment From Participating in All Procurement and Nonprocurement Transactions With the Executive Branch of the Federal Government for a 5-Year Period
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) performed a review of The Retreat at Church Ranch bank records based on our audit conducted of the project. Our review disclosed that the owner allegedly made payments for personal expenses from the project’s bank account. We requested that HUD pursue proceedings against the owner.
On July 22, 2015, HUD notified the owner of his…
March 23, 2016
Memorandum
#2016-DE-1801
FHA Approved Nonprofits Purchasing Real Estate-Owned Homes
The U.S. Department of Housing and Urban Development – Office of Inspector General audited HUD’s Federal Housing Administrations rules and requirements pertaining to nonprofits purchasing real estate-owned (REO) homes during the exclusive listing period. We initiated this review based on information found during an audit of a nonprofit that purchased homes during the exclusive listing period in memorandum 2015-DE-1801. Our…
March 23, 2016
Memorandum
#2016-KC-0801
The City of Jersey City’s Administration of Its Lead Paint Activities Did Not Comply With Federal and New Jersey State Requirements
We are conducting an audit of the City of Jersey City’s Community Development Block Grant (CDBG) program based upon an Office of Inspector General (OIG) hotline complaint containing several allegations, one of which was that the City’s Division of Community Development’s lead risk assessor was not qualified or producing monitoring reports for rehabilitation work funded under the City’s Homeowner Rehabilitation Program. The…
February 10, 2016
Memorandum
#2016-NY-1801
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 2015
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 2015. 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…
January 31, 2016
Memorandum
#2016-FO-0801