Wells Fargo Mortgage, San Antonio, Texas, Loans Generally Complied with Reverse Mortgage Requirements
We audited Wells Fargo Mortgage (Wells Fargo) as part of our annual audit plan objective of improving the integrity of single family insurance programs. Our objective was to determine whether Wells Fargo complied with U. S. Department of Housing and Urban Development (HUD) origination requirements for the Home Equity Conversion Mortgage program, commonly known as a reverse mortgage.
Wells Fargo generally complied with HUD's reverse mortgage…
September 25, 2008
Report
#2008-FW-1013
The Dallas Housing Authority, Dallas, Texas, Mismanaged Its Housing Choice Voucher Program
As part of our strategic plan objective to assist the U. S. Department of Housing and Urban Development's (HUD) efforts to reduce rental assistance overpayments, we audited the Dallas Housing Authority's (Authority) Housing Choice Voucher program (voucher program). Our objective was to determine whether the Authority properly administered its overall voucher program.
The Authority acknowledged its longstanding weaknesses, as previously…
July 31, 2008
Report
#2008-FW-1011
Senior Reverse Mortgage Services, Bedford, Texas, Generally Complied with HUD Regulations but Could Improve
We reviewed Senior Reverse Mortgage Services, Incorporated (originator), a home equity conversion mortgage (HECM) originator. The originator originated loans for one of the largest lenders in Texas, Financial Freedom Senior Funding Corporation.
Our objective was to determine whether the originator complied with U.S. Department of Housing and Urban Development (HUD) regulations and adequately counseled borrowers and disclosed costs.
Generally,…
July 14, 2008
Report
#2008-FW-1010
The Owner of Century Mission Oaks, San Antonio, Texas, Violated Its Regulatory Agreement with HUD
As part of the Office of Inspector General's (OIG) annual audit plan, we audited Century Mission Oaks (project). Our objectives were to determine whether the project's owner-manager, Century Mission Oaks GEAC, LLC (owner), complied with the regulatory agreement with the U. S. Department of Housing and Urban Development (HUD) during fiscal years 2005 and 2006. Specifically, we wanted to determine whether the owner (1) adequately…
March 21, 2008
Report
#2008-FW-1008
Dallas Housing Authority, Dallas, Texas, Management Failed to Implement Internal Controls over Its Housing Choice Voucher Program
As part of our strategic plan objective to assist the U. S. Department of Housing and Urban Development's (HUD) efforts to reduce rental assistance overpayments, we audited the Dallas Housing Authority's (Authority) financial management of its Housing Choice Voucher program (voucher program). Our objective was to determine whether the Authority had the necessary financial controls in place to operate its voucher program in an efficient…
March 20, 2008
Report
#2008-FW-1006
City of Dallas, Dallas, Texas, Incurred Ineligible and Unsupported Expenses for Its Housing Opportunity for Persons with AIDS Grant
We conducted a review of the City of Dallas' (City) Housing Opportunities for Persons with AIDS (HOPWA) grant. Our objectives were to determine whether the City and its program sponsors provided rent, mortgage, and utility assistance to persons who met program criteria and whether the 2005 and 2006 competitive grants provided transitional and replacement housing.
Generally, the City complied with program requirements to ensure that it and…
March 20, 2008
Report
#2008-FW-1007
Housing Authority of McKinney, McKinney, Texas, Inappropriately Advanced Funds and Transferred Real Estate to Its Not-for-Profit Affiliate
Based on a hotline complaint, we audited the Housing Authority of the City of McKinney (Authority). Our objective was to determine whether the Authority's transactions with its affiliated nonprofit, the McKinney Housing Opportunity Corporation (Corporation), complied with U.S. Department of Housing and Urban Development (HUD) requirements.
In violation of its annual contributions contract, the Authority inappropriately provided $915,487 in…
January 06, 2008
Report
#2008-FW-1005
Community Development Corporation of Brownsville, Brownsville, Texas, Did Not Use Its Housing Counseling Grants for the Intended Purpose
We audited the Community Development Corporation of Brownsville, Inc. (Corporation), at the request of the U. S. Department of Housing and Urban Development's (HUD) San Antonio Director of Community Planning and Development. Our objective was to determine whether the Corporation correctly charged administrative costs to its various federal funding sources. We expanded our objective to also determine whether the Corporation used housing…
December 17, 2007
Report
#2008-FW-1004
The Dallas Housing Authority, Dallas, Texas, Mismanaged its Portable Vouchers
As part of our strategic plan objective to assist the U. S. Department of Housing and Urban Development's (HUD) efforts to reduce rental assistance overpayments, we audited the portability features of the Dallas Housing Authority's (Authority) Housing Choice Voucher program. Our objective was to determine whether the Authority administered portability in accordance with HUD requirements.
The Authority mismanaged its portable vouchers…
December 04, 2007
Report
#2008-FW-1003
Fallbrook Apartments', Houston, Texas, Owner and/or Management Agent Made Unauthorized Distributions of the Project's Funds
July 06, 2007
Report
#2007-FW-1012
Alethes Mortgage, LLC, and Its Dallas, Texas, Branch, Waters Edge Mortgage, LLC, Did Not Comply with All HUD Underwriting Requirements
June 08, 2007
Report
#2007-FW-1010
Southwest Alliance of Asset Managers, LLC, Addison, Texas: Did Not Effectively Enforce the Lease Terms Over Payment of Property Utilities
June 23, 2006
Report
#2006-AO-1001
American Property Financial, Nonsupervised Loan Correspondent, San Antonio, TX
We audited American Property Financial (American), a nonsupervised loan correspondent approved to originate Federal Housing Administration mortgage loans under the U.S. Department of Housing and Urban Development's (HUD) Single Family Direct Endorsement Program. American originated 83 Federal Housing Administration loans between February 1, 2002, and January 31, 2004. As of February 23, 2004, 14 of the 83 loans were in default status. Synergy…
January 27, 2005
Report
#2005-FW-1004
Self-proclaimed “Short Sale Queen” and associates indicted in federal mortgage fraud scheme
PLANO, Texas – Three Texas women have been charged with federal violations related to a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.Nicole Espinosa, also known as Short Sale Queen, 35, of Plano; Stephanie Smith, also known as Stephanie Parks, 44, of Midlothian; and Selena Baltazar-Hill, 28, of Dallas, were indicted by a federal grand jury on November 20, 2024, and charged with federal…
Press release
December 03, 2024
Amarillo City Employee Pleads Guilty to Embezzling $465,000 From Homeless Program
An Amarillo city employee pleaded guilty today to embezzling more than $465,000 in funds meant to provide shelter for homeless people, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.Amy Dixon, 44, the City of Amarillo’s former Homeless Management Information Specialist, pleaded guilty Monday to a criminal information charging conspiracy to embezzle from a federally funded program.In her role, Ms. Dixon was responsible…
Press release
June 17, 2024
Houstonian admits to Hurricane Harvey house fraud
HOUSTON – A 45-year-old Houston area resident has pleaded guilty to fraudulently applying for and receiving a newly rebuilt house worth $314,000, announced U.S. Attorney Alamdar S. Hamdani.Christopher Montealegre admitted to one count of theft of government funds after he knowingly applied for relief intended for victims the hurricane impacted through a program the U.S. Department of Housing and Urban Development (HUD) administered. Montealegre…
Press release
June 12, 2024
Former Killeen Housing Authority Executive Director Arrested on Federal Embezzlement Charges
WACO, Texas – An Austin woman was arrested this week on criminal charges related to her alleged embezzlement of federal funds for personal use while serving as the executive director of the Killeen Housing Authority (KHA).According to court documents, DeAdra Johnson, 52, allegedly stole thousands of dollars designated for KHA programs and used them for personal use. A federal indictment alleges that Johnson used the stolen funds to pay for…
Press release
January 19, 2024
Laredo salesman sent to prison for fraud conspiracy costing HUD $1M in losses
LAREDO, Texas – A 38-year-old man was sentenced for his role in a complex mortgage fraud scheme, announced U.S. Attorney Alamdar S. Hamdani.Edmundo De La Torre pleaded guilty April 19 to orchestrating a mortgage fraud scheme in which he altered hundreds of documents to get otherwise unqualified buyers’ approval for government-backed mortgages.U.S. District Judge Marina Marmalejo has now ordered De La Torre to serve 36 months in federal prison to…
Press release
November 28, 2023