U.S. flag

An official website of the United States government Here’s how you know

The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.


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 the violations to HUD’s Office of Program Enforcement for action under the Program Fraud Civil Remedies Act.

In July 2005, one borrower obtained a HECM loan on a property that he owned in Massachusetts and certified in writing that the home was his principal residence.  However, in March 2008, he obtained a second HECM loan on another property that he owned in Georgia and certified in writing that it was his principal residence.  These actions violated HUD’s principal residency requirements because the borrower owned both properties at the same time.  On July 17, 2016, HUD’s Office of Program Enforcement filed a complaint against the borrower under the Program Fraud Civil Remedies Act.  After negotiations with HUD, the borrower agreed to pay $1,500 to settle the matter.  The agreement did not constitute an admission of liability or fault by any party.  The borrower made an initial payment of $300 on September 27, 2016, and agreed to a repayment plan for the remaining $1,200.

Recommendation Status Date Issued Summary
2017-PH-1801-001-A Cerrado Enero 06, 2017 Acknowledge that the attached settlement agreement for $1,500 represents an amount due HUD.