Final Civil Action, Wells Fargo Bank, NA, Lender 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 the same time.…
October 21, 2014
Memorandum
#2015-PH-1801
The Management of the Housing Authority of the City of Taylor, Taylor, TX, Did Not Exercise Adequate Oversight of Its Programs
In accordance with our annual audit plan to review public housing programs and because of an anonymous complaint and issues identified by the San Antonio Office of Public Housing, we reviewed the Housing Authority of the City of Taylor, Taylor, TX. Our objectives were to determine whether the Authority operated its public housing and related grant programs in accordance with the U.S. Department of Housing and Urban Development’s…
October 02, 2014
Memorandum
#2015-FW-1801
Final Civil Action: Bank of America, Charlotte, NC Settled Allegations of Failing To Comply With HUD’s FHA Underwriting Requirements
Our office assisted the U.S. Department of Justice (DOJ), U.S. Attorney’s Office, Eastern District of New York, in conducting an investigation of Bank of America’s origination of mortgage loans insured by the Federal Housing Administration (FHA) from May 1, 2009, through March 31, 2012. On August 20, 2014, Bank of America entered into a settlement agreement to pay $16.65 billion, of which $9.65 billion resolved pending and…
September 30, 2014
Memorandum
#2014-FW-1808
Final Civil Action: U.S. Bank Settled Allegations of Failing To Comply With HUD’s FHA Loan Requirements
The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General (OIG), in conjunction with the Department, the U.S. Department of Justice, and the U.S. Attorney’s Offices for the Eastern District of Michigan and Northern District of Ohio, conducted a joint investigation of U.S. Bank National Association’s (U.S. Bank) loan originations, underwriting practices, and quality control program for Federal Housing…
September 30, 2014
Memorandum
#2014-CH-1801
Complaint Allegations Substantiated - City of Colorado Springs’ HOME and CDBG Programs
The U.S. Department of Housing and Urban Development – Office of Inspector General audited the City of Colorado Springs (City) in response to a citizen’s complaint received by our office. The complainant alleged the City committed HOME Investment Partnerships Program (HOME) funds without written agreements, delayed the reporting of Community Development Block Grants (CDBG) program income in a timely manner, and improperly…
September 30, 2014
Memorandum
#2014-DE-1802
Memorandum Report on the Office of Inspector General’s Internal Audit of HUD’s Single Family Seven-Loan Limit
The U.S. Department of Housing and Urban Development – Office of Inspector General audited HUD’s Federal Housing Administrations single family mortgage seven-loan limit. We initiated this review based on issues identified in an audit of the Wyoming Housing Opportunities Association in memorandum 2013-DE-1801. Our objective was to determine the impact of investor loan properties on the FHA fund.
We found multiple…
September 30, 2014
Memorandum
#2014-KC-0801
The Housing Authority of the City of Stamford, CT Took Appropriate Action to Resolve a Complaint While Complying With Procurement Regulations
We audited the Housing Authority of the City of Stamford, doing business as Charter Oak Communities. We received an anonymous complaint against the Authority related to an alleged improper procurement. The complainant alleged that Authority officials awarded a contract to an employee’s spouse without following procurement and conflict-of-interest requirements. In addition, a previous audit (Audit report number 2012-…
September 26, 2014
Memorandum
#2014-BO-1801
Final Civil Action – Reunion Mortgage, Inc. Settled Allegations of Making False Claims to the Federal Housing Administration
We assisted the U.S. Attorney’s Office of the Northern District of California in the civil investigation of Reunion Mortgage, Inc. (Reunion). Reunion is a former Federal Housing Administration (FHA)-approved mortgage lender, with its principal place of business located in Milpitas, CA. Based in large part on our review of loans underwritten by Reunion between December 2007 through October 2009, the U.S. Attorney’s Office…
September 25, 2014
Memorandum
#2014-CF-1810
Final Civil Action – Judgment Imposed on Loan Officer Regarding Allegations of Making a False Certification to HUD for a Home Purchase Under the Federal Housing Administration Program
We conducted a civil fraud review of an alleged loan origination fraud scheme involving a loan officer that assisted a borrower to purchase a home under the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) program. The alleged scheme involved submitting a false loan application and other documentation to obtain an FHA-insured loan on a home in Brentwood, CA. Based in part on OIG’…
September 25, 2014
Memorandum
#2014-CF-1809
The Beaumont Housing Authority, Beaumont, TX, Needs To Improve Controls Over Its Housing Programs
In accordance with our regional plan to review public housing programs, we reviewed the Beaumont Housing Authority, Beaumont, TX. Our objective was to determine whether the Authority’s controls over tenant and unit eligibility were sufficient to ensure that it administered its low-rent public housing and Housing Choice Voucher programs in accordance with U.S. Department of Housing and Urban Development (HUD) regulations and…
September 22, 2014
Memorandum
#2014-FW-1807
HUD’s Monitoring of the Vieques Sports City Complex’s Section 108 Loan Guarantee Program
We reviewed HUD’s San Juan, PR, Office of Community Planning and Development’s monitoring of the Vieques, PR, Sports City Complex project. The review was performed based on indicators identified in the audit of the Vieques Sports City Complex, Office of the Commissioner for Municipal Affairs’ (OCMA) Puerto Rico State Community Development Block Grant (CDBG) Section 108 Loan Guarantee program. More than 11 years had elapsed…
September 18, 2014
Memorandum
#2014-AT-0801
Review of Home Forward, Portland, OR’s Compliance With Federal Lobbying Disclosure Requirements and Restrictions
We conducted a review of Home Forward (previously named the Housing Authority of Portland, OR) based on concerns noted during our ongoing internal audit of the U.S. Department of Housing and Urban Development’s (HUD) oversight of public housing authorities’ compliance with Federal lobbying disclosure requirements. Our review objective was to determine whether Home Forward complied with Federal lobbying disclosure requirements…
September 05, 2014
Memorandum
#2014-PH-1806
Final Civil Action – NDC Real Estate Management, Inc. Settled Allegations of Falsifying or Modifying Records and Documents to Maximize HUD’s Section 8 Housing Assistance Payments
We assisted the U.S. Attorney’s Office for the Eastern District of Kentucky in the investigation of NDC Real Estate Management, Inc. (NDC). The investigation began due to a qui tam filing in the U.S. District Court for the Eastern District of Kentucky. The False Claims Act allows private persons to file suit for violations of the False Claims Act on behalf of the Government. A suit filed by an individual on behalf of…
September 02, 2014
Memorandum
#2014-CF-1808
Final Civil Action – JPMorgan Chase Settled Allegations of Failing to Comply With HUD’s FHA Loan Requirements
We assisted the U.S. Attorney’s Office, Southern District of New York, in conducting an investigation of JPMorgan Chase Bank, N.A., and JPMorgan Chase & Co. (Chase). The investigation began due to a qui tam filing in the U.S. District Court for the Southern District of New York. The False Claims Act allows private persons to file suit for violations of the False Claims Act on behalf of the Government. A suit…
September 02, 2014
Memorandum
#2014-CF-1807
Final Civil Action – President of FHA-Approved Lender Settled Allegations of Causing a False Statement To Be Made to HUD Regarding an FHA-Insured Loan (Memorandum not available to the public)
We investigated allegations that the president of a Federal Housing Administration (FHA)-approved lender violated loan origination requirements under the U.S. Department of Housing and Urban Development (HUD), FHA insurance program. The allegations were that although the loan application showed the lender’s president as the loan officer who originated the loan, it was actually originated by an employee of the lender, who was…
August 21, 2014
Memorandum
#2014-CF-1806
The South Landry Housing Authority, Grand Coteau, LA, Did Not Always Comply With Federal Procurement and Financial Requirements, Including a Procurement Using Recovery Act Funds
In accordance with our regional plan to review public housing programs and because of weaknesses identified by the U.S. Department of Housing and Urban Development (HUD), we reviewed the public housing programs of the South Landry Housing Authority, Grand Coteau, LA. Our objective was to determine whether the Authority administered its HUD public housing programs in accordance with regulations and guidance.
The Authority did not…
August 19, 2014
Memorandum
#2014-FW-1806
The Kenner Housing Authority, Kenner, LA, Did Not Administer Its Public Housing and Recovery Act Programs in Accordance With Regulations and Guidance
In accordance with our regional plan to review public housing programs and because of weaknesses identified during a prior audit by the U.S. Department of Housing and Urban Development (HUD), Office of the Inspector General (OIG), we reviewed the public housing programs of the Kenner Housing Authority in Kenner, LA. Our overall objective was to determine whether the Authority administered its public housing programs in…
August 13, 2014
Memorandum
#2014-FW-1805
Memorandum Report on the Wyoming Community Development Authority’s Role in the Village Creek Townhomes’ 51 FHA Mortgage Defaults
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Wyoming Housing Opportunities Association (Association) based on information obtained during a separate audit of the Wyoming Community Development Authority (State Finance Agency), which indicated that 51 Federal Housing Administration (FHA) mortgages with the same borrower had defaulted. The purpose of our audit was to determine…
August 12, 2014
Memorandum
#2014-DE-1801
Final Civil Action – Borrower Settled Allegations of Making a False Certification to HUD Regarding a Home Purchase Under the Federal Housing Administration Program
We reviewed an alleged loan origination fraud scheme involving a borrower purchasing a home in which the loan was insured under the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) program. The alleged scheme involved submitting a false loan application to obtain an FHA-insured loan on a home in Brentwood, CA. Based in part on our review, HUD filed a complaint against the…
August 11, 2014
Memorandum
#2014-CF-1805
The Management of the Housing Authority of the City of Beeville, Beeville, TX, Did Not Exercise Adequate Oversight and Allowed Ineligible and Unsupported Costs
In accordance with our regional plan to review public housing programs and as part of our overall risk strategy to review smaller housing authorities, we reviewed the Housing Authority of the City of Beeville, TX. Our objective was to determine whether the Authority operated its public housing and related grant programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements. However,…
August 01, 2014
Memorandum
#2014-FW-1804