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Report Fraud, Waste and Abuse
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    Date Issued
    Final Civil Action: First American Mortgage Trust Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
    The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office for the District of Massachusetts in the civil investigation of First American Mortgage Trust.  First American has its principal place of business in Brighton, MA, and does business as NXTLoan.Com Corp., a Delaware corporation.  First American is the parent company of NXTL. On October 18, 2016, First…
    September 18, 2017
    Memorandum
    #2017-CF-1805
    The Housing Authority of the City of Meridian Did Not Adequately Maintain Its FHA-Insured Rental Apartments
    We audited the Housing Authority of the City of Meridian’s Queen City apartments at the request of the U.S. Department of Housing and Urban Development’s (HUD) Single Family Office of Asset Management.  Our objectives were to determine whether the Authority acquired, financed, and managed the purchase of the apartments in accordance with applicable regulations and determine the cause of the Queen City apartments’ Federal Housing…
    August 25, 2014
    Report
    #2014-AT-1009
    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
    The Neighborhood Assistance Corporation of America Generally Administered Its HUD Grants Used for Housing Counseling Activities in Accordance With HUD Requirements
    We audited the Neighborhood Assistance Corporation of America (NACA), a Department of Housing and Urban Development (HUD)-approved organization providing housing counseling services to qualified home buyers or homeowners with unaffordable mortgage payments. The audit was initiated at the direction of HUD's Inspector General. Our audit objective was to determine whether NACA properly administered its HUD grants used for housing counseling…
    February 15, 2011
    Report
    #2011-BO-1004
    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