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Report Fraud, Waste and Abuse
  • Recommendation Number: 2017-LA-1802-001-C
  • Status: Closed
  • Date Issued: September 22, 2017
Closed Date:
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.

Publication Report

2017-LA-1802 | September 22, 2017

SecurityNational Mortgage Company, Las Vegas, NV, Improperly Originated FHA Loans for Properties With Restrictive Covenants

We audited SecurityNational Mortgage Company’s Federal Housing Administration (FHA) loan origination because it was among the top lenders that originated FHA-insured loans with downpayment assistance from the City of Las Vegas.  A previous U.S.… more

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2017-LA-1802-001-A
    Closed on March 06, 2019
    $408,295.00
    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 $381,823 for the seven loans.

  •  
    Status
      Open
      Closed
    2017-LA-1802-001-B
    Closed on January 16, 2018
    $26,472.00
    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 $26,472 for partial claims paid on one FHA loan that contained prohibited restrictive covenants.

  •  
    Status
      Open
      Closed
    2017-LA-1802-001-D
    Closed on February 27, 2019

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

General Counsel

  •  
    Status
      Open
      Closed
    2017-LA-1802-001-E
    Closed on June 01, 2018

    Determine legal sufficiency and if legally sufficient, pursue civil and administrative remedies, civil money penalties, or both against SecurityNational, 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.