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Report Fraud, Waste and Abuse
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    Date Issued
    Eustis Mortgage Did Not Always Operate Its FHA Program In Accordance With HUD Requirements
    We audited Eustis Mortgage Corporation, a Federal Housing Administration (FHA) direct endorsement lender located in New Orleans, LA. We selected Eustis Mortgage as a result of our regional risk analysis and the U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General’s (OIG) annual audit plan goal to review single-family programs and lenders. Our objective was to determine whether Eustis Mortgage (1) complied with…
    March 21, 2013
    Report
    #2013-FW-1002
    New Day Financial, LLC, Fulton, MD, Ensured Loans Met FHA Requirements
    We reviewed 32 Federal Housing Administration (FHA) loans that New Day Financial, LLC, underwrote as a U.S. Department of Housing and Urban Development (HUD) FHA direct endorsement lender. We conducted the review as a result of a risk model assessment that identified mortgage lenders that were at high risk to cause losses to the FHA insurance fund. New Day was one of the lenders identified that made insurance claims within the first 2 years of…
    March 07, 2013
    Memorandum
    #2013-PH-1802
    NFM, Inc., Linthicum, MD, Did Not Fully Implement Its Quality Control Plan in Accordance With HUD Requirements
    We audited NFM, Inc. (NFM), a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. We selected NFM based on significant risk indicators, which included a high percentage of loans with front- and/or and back-end ratios in excess of U.S. Department of Housing and Urban Development (HUD) requirements and loans defaulting within six or fewer payments. Our objective was to determine whether…
    November 09, 2010
    Report
    #2011-PH-1004
    Dell Franklin Financial, LLC, Millersville, MD, Did Not Properly Underwrite a Selection of FHA Loans
    We reviewed 20 Federal Housing Administration (FHA) loans that Dell Franklin Financial, LLC (Dell), underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Dell underwrote the 20 loans in accordance with FHA requirements. This review is part of Operation Watchdog, an Office of Inspector General (OIG) initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA…
    July 30, 2010
    Memorandum
    #2010-CH-1810
    Residential Home Funding Corporation, Gaithersburg, MD, Did not Always Comply With HUD Requirements in Origination FHA-Insured Single-Family Loans
    We audited Residential Home Funding Corporation, a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. Residential Home Funding Corporation has one office located in Gaithersburg, Maryland. We selected Residential Home Funding Corporation because its default rate was significantly higher than the average default rate for the State of Maryland. Our objective was to determine whether…
    January 20, 2010
    Report
    #2010-PH-1004