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…

We audited the Housing Authority of Baltimore City’s (Authority) administration of its Public Housing Capital Fund grants that it received under the American Recovery and Reinvestment Act of 2009 (Recovery Act). We selected the Authority for audit because it received a $32.7 million formula grant, which was the largest formula grant awarded in the State of Maryland. Our audit objective was to determine whether the Authority administered…

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…

We audited the Elkton Housing Authority (Authority) because it received Public Housing Capital Fund Recovery Act grant (grant) funding as part of the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objective was to determine whether the Authority obligated and disbursed capital funds received under the Recovery Act according to the requirements of the act and applicable U.S. Department of Housing and Urban Development (HUD)…

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…

We audited the Housing Authority of the City of Annapolis' (Authority) management of lead-based paint in its public housing units in response to a citizen complaint. The audit objective was to determine whether the Authority complied with U.S. Department of Housing and Urban Development (HUD) and State of Maryland (State) requirements for inspecting and abating lead-based paint hazards in its public housing units. The Authority did not…

We audited the Housing Authority of Baltimore City's (Authority) administration of its leased housing under its Moving to Work Demonstration (Moving to Work) program based on our analysis of various risk factors relating to the housing authorities under the jurisdiction of the U.S. Department of Housing and Urban Development's (HUD) Baltimore field office. This is the second audit report issued on the Authority's program. The…

We audited the State of Maryland's (State) HOME Investment Partnerships program (HOME) as part of our annual audit plan. We chose to audit the State's HOME-assisted single-family owner-occupied rehabilitation program based on deficiencies identified in a sample of work-write ups reviewed during a previous review of the State's HOME program. This audit is the second phase of our review of the State's HOME program. Our overall…

We audited the Housing Authority of Baltimore City's (Authority) administration of its leased housing under its Moving to Work Demonstration (Moving to Work) program. We conducted the audit based on our analysis of various risk factors relating to the housing authorities under the jurisdiction of the U.S. Department of Housing and Urban Development's (HUD) Baltimore field office. This is the first of two audit reports to be issued on…

Defendant Fraudulently Obtained $223,870 FHA-Insured Home MortgageHUNTINGTON, W.Va. – Jason Trador, 46, of Scott Depot, was sentenced today to one year and six months in prison, to be followed by three years of supervised release, and ordered to pay $65,302.16 in restitution for making a false statement to federal agents, willfully overvaluing property on a loan application, and three counts of making a false statement to the United States…

PITTSBURGH, Pa. - A resident of Laurel, Maryland, has been sentenced in federal court to three years of probation and restitution of more than $50,000 following her conviction for theft of government funds from two federal agencies, United States Attorney Eric G. Olshan announced today.Senior United States District Judge Joy Flowers Conti imposed the sentence on Briayell Moore, 43.In connection with Moore’s guilty plea, the Court was advised…

Program Focused on Eliminating Environmental Hazards and Combatting Sexual Misconduct in HUD-Assisted Housing.Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron and the U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted a seminar today focused on promoting the health and safety of tenants living in HUD-assisted housing by focusing on eliminating environmental hazards…

Defendant Fraudulently Obtained $223,870 FHA-Insured Home MortgageHUNTINGTON, W.Va. – After two days of trial, a federal jury convicted Jason Trador, 46, of Scott Depot, on April 10, 2024, of making a false statement to federal agents, willfully overvaluing property on a loan application, and three counts of making a false statement to the United States Department of Housing and Urban Development (HUD)Evidence at trial proved that Trador…

BECKLEY, W.Va. – Timothy Gross, 39, of Beckley, was sentenced today to five years of probation and ordered to pay $65,275.44 in restitution for wire fraud. Gross admitted to making a fraudulent payment with an employer-issued credit card as part of a scheme to divert $65,275.44 in credit card charges to his personal bank account.According to court documents and statements made in court, Gross was hired by Amerihost LLC in 2020 as a maintenance…

BECKLEY, W.Va. – Laquenta Lowe, 46, of Beckley, was sentenced today to five years of federal probation and ordered to pay $8,954.76 in restitution for conversion of public money exceeding $1,000. Lowe admitted to stealing at least $7,978.91 in federal funds while employed by the Raleigh County Housing Authority (RCHA). According to court documents and statements made in court, Lowe was chief financial officer and accountant for the RCHA from…

BECKLEY, W.Va. – Timothy Gross, 39, of Beckley, pleaded guilty today to wire fraud, admitting to making a fraudulent payment with an employer-issued credit card as part of a scheme to divert more than $65,000 in credit card charges to his personal bank account. According to court documents and statements made in court, Gross was hired by Amerihost LLC in 2020 as a maintenance worker for Beckley Town Homes, a multi-unit apartment building in…

BECKLEY, W.Va. Laquenta Lowe, 45, of Beckley, pleaded guilty today to conversion of public money exceeding $1,000. Lowe admitted to stealing at least $7,978.91 in federal funds while employed by the Raleigh County Housing Authority (RCHA). According to court documents and statements made in court, Lowe was chief financial officer and accountant for the RCHA from July 1, 2018 through May 31, 2019. Lowe was executive director of the RCHA from…