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Report Fraud, Waste and Abuse
  • Recommendation Number: 2017-LA-1801-001-D
  • Status: Closed
  • Date Issued: September 20, 2017
Closed Date:
February 27, 2019

Provide training to its employees regarding HUD’s requirements related to prohibited restrictions on conveyance.

Publication Report

2017-LA-1801 | September 20, 2017

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… more

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2017-LA-1801-001-A
    Closed on March 06, 2019
    $423,759.00
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Work with HUD to nullify the restrictions on conveyance that violate HUD policy or indemnify HUD. This action will protect HUD against future losses of $418,277 for the eight loans.

  •  
    Status
      Open
      Closed
    2017-LA-1801-001-B
    Closed on January 03, 2018
    $5,482.00
    Questioned Costs

    Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.

    Repay HUD $5,482 for partial claims paid on two FHA loans that contained prohibited restrictive covenants.

  •  
    Status
      Open
      Closed
    2017-LA-1801-001-C
    Closed on February 27, 2019

    Develop and implement policies and procedures to identify prohibited restrictions on conveyance to ensure that it does not originate FHA loans with prohibited restrictive covenants.

General Counsel

  •  
    Status
      Open
      Closed
    2017-LA-1801-001-E
    Closed on June 01, 2018

    Determine legal sufficiency and if legally sufficient, pursue civil and administrative remedies, civil money penalties, or both against Venta, its principals, or both for incorrectly certifying to the eligibility for FHA mortgage insurance or that due diligence was exercised during the origination of FHA loans.