HUD OIG conducted a civil investigation of an alleged loan origination fraud scheme involving a cash-out refinance loan that was insured by the Federal Housing Administration (FHA).  FHA provides mortgage insurance on loans made by FHA-approved lenders to creditworthy borrowers.  Borrowers must occupy the properties as their primary residence for at least 1 year.  Borrowers certify to their intent to occupy the property when signing the uniform residential loan application and an addendum to the loan application.  Based on our investigation, HUD alleged that

HUD OIG assisted the U.S. Department of Justice, Washington, DC, and the U.S.

We audited Peoples Home Equity, Inc.(Peoples), a Federal Housing Administration (FHA) approved nonsupervised direct endorsement lender located in Brentwood, TN.  We selected Peoples based on its high default rates.  The audit was part of our annual audit plan to review single family programs and lenders.  Our audit objectives were to determine whether Peoples complied with HUD requirements when it originated and underwrote FHA loans, and implemented its quality control program.  Peoples did not always originate and underwrite FHA insured loans in accordance

We audited EverBank’s Preforeclosure Sale Program because it had the highest Florida preforeclosure sale claims of all servicing lenders located in Florida and more than 50 percent of its Florida Federal Housing Administration (FHA) claims were from preforeclosure sales with more than $12.9 million paid from 2011 through 2013.  Our objective was to determine whether EverBank properly determined that mortgagors were eligible to participate in FHA’s Preforeclosure Sale Program. EverBank did not properly determine that mortgagors were eligible to participate in FHA’s Preforec

We audited the Housing Authority of the City of Meridian’s Queen City apartments at the request of the U.S.