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Report Fraud, Waste and Abuse
  • Recommendation Number: 2017-LA-1803-001-B
  • Status: Closed
  • Date Issued: September 28, 2017
Closed Date:
January 05, 2018

Repay HUD $26,242 for partial claims paid on two FHA loans that contained prohibited restrictive covenants.

Publication Report

2017-LA-1803 | September 28, 2017

RMS & Associates, Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants

We audited RMS & Associates’ 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-1803-001-A
    Closed on March 06, 2019
    $2,460,446.00
    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 $2,434,204 for the 49 loans.

  •  
    Status
      Open
      Closed
    2017-LA-1803-001-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.

  •  
    Status
      Open
      Closed
    2017-LA-1803-001-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-1803-001-E
    Closed on June 01, 2018

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