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
Sons of Divine Providence Did Not Ensure That the Don Orione Home, East Boston, MA, Operated in Accordance With Its Regulatory Agreement
Sons of Divine Providence did not properly oversee the HUD-insured nursing home to ensure that it operated in accordance with its regulatory agreement. By not informing HUD of the lawsuits, the changes in management agents, and the loans, Sons of Divine Providence did not provide HUD the necessary data to understand the risk to the HUD insurance fund. However, when Sons of Divine Providence sold the nursing home and paid off the HUD…
October 13, 2016
Memorandum
#2017-BO-1801
Cunningham and Company Settled Alleged Violations of Failing To Comply With Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), investigated Cunningham and Company to determine whether it violated HUD requirements when underwriting loans insured by the Federal Housing Administration (FHA). Cunningham is an FHA mortgage lender, formerly located in Greensboro, NC. Based on OIG’s review, HUD contends that Cunningham may be liable under the Program Fraud Civil Remedies Act…
September 08, 2016
Memorandum
#2016-CF-1803
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
The Owner of the West Village Expansion Project, Durham, NC, Failed To Comply With Its Regulatory Agreement With HUD
We audited the West Village Expansion Project in Durham, NC, a U.S. Department of Housing and Urban Development (HUD) Section 220-insured property, due to a citizen’s hotline complaint. The anonymous complainant alleged that the managing member of the project’s ownership entity spent an excessive amount of project funds on legal fees, transferred more than $500,000 to another entity owned by it, and failed to keep the mortgage current. Our…
July 27, 2012
Report
#2012-AT-1014
Final Civil Action - Bank of America Settled Alleged Violations of the False Claims Act by Countrywide Home Loans, Inc.
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted a review of loans underwritten by Countrywide Home Loans Inc., and its divisions Countrywide Bank FSB and Countrywide Mortgage Ventures, LLC. The objective of the review was to determine whether Countrywide underwrote Federal Housing Administration (FHA) loans in accordance with HUD-FHA regulations.
Countrywide is a subsidiary of Bank of…
June 12, 2012
Memorandum
#2012-CF-1809
Bank of America Corporation, Foreclosure and Claims Process Review Charlotte, NC
As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed Bank of America’s foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews.…
March 12, 2012
Memorandum
#2012-FW-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
Office of Multifamily Housing Boston Hub Staff Effectively Used Contract Fee Inspectors
We reviewed the use of contract fee inspectors by the Office of Multifamily Housing Boston Hub (Boston Hub) as part of our 2007 annual audit plan. This review was initiated because U.S. Department of Housing and Urban Development (HUD) staff rely on contract fee inspectors to oversee the work of contractors performing renovation work on HUD-insured properties. Our objective was to determine whether the Boston Hub effectively used contract fee…
February 13, 2008
Report
#2008-BO-0001
Mortgage Short Sale Negotiator Sentenced for Defrauding Mortgage Lenders
BOSTON – The principal and co-founder of a North Andover mortgage short sale assistance company was sentenced yesterday in connection with defrauding mortgage lenders and investors out of nearly $500,000 in proceeds from about 90 short sale transactions.
Jaime L. Mulvihill, 40, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to six months in prison, two years of supervised release, and ordered to pay restitution in the amount of…
Press release
February 26, 2020