JPMorgan Chase Complied with the Market Rate Requirement for FHA Home Affordable Modification Program Stand-Alone Partial Claims
We audited JPMorgan Chase’s (Chase) Federal Housing Administration Home Affordable Modification Program (FHA-HAMP) stand-alone partial claims. We selected Chase for review based on our analysis of risk factors of loan servicers that filed FHA-HAMP stand-alone partial claims and in accordance with our annual audit plan. Our audit objective was to determine whether Chase complied with the FHA-HAMP stand-alone partial claim market rate...
Septiembre 15, 2017
Report
#2017-AT-1012
Final Civil Action: Financial Freedom, a Division of CIT Bank, N.A., Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Servicing Requirements for HECM Claims
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ), Washington, DC, and the U.S. Attorney’s Office for the Middle District of Florida in a civil investigation of Financial Freedom Acquisition, a division of CIT Bank, N.A. Financial Freedom was originally owned by IndyMac Bank until its failure in 2008, when the Federal Deposit Insurance Corporation...
Agosto 21, 2017
Memorandum
#2017-CF-1804
Reverse Mortgage Solutions, Inc., Settled Alleged Violations of Federal Housing Administration Loan Requirements Related to Home Equity Conversion Mortgages
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted in an investigation into alleged violations by Reverse Mortgage Solutions, Inc., of Federal Housing Administration (FHA) regulations related to its Home Equity Conversion Mortgage (HECM) program. The investigation began due to a qui tam filed under the False Claims Act, 31 U.S.C. (United States Code) 3729, in the U.S. District Court for...
Septiembre 28, 2015
Memorandum
#2015-CF-1808
Cornerstone Home Lending, Houston, TX, Did Not Adequately Underwrite 16 Loans, Violated the Real Estate Settlement Procedures Act, and Did Not Implement an Adequate Quality Control Plan During Our Review Period
We audited Cornerstone Home Lending, formerly known as Cornerstone Mortgage Company. We selected Cornerstone based upon a high default rate at Cornerstone’s Branch 87 in 2007 through 2009. Our audit objectives were to determine whether Cornerstone (1) complied with HUD and Federal Housing Administration (FHA) regulations when originating and underwriting FHA-insured mortgages and (2) implemented a quality control plan that met...
Septiembre 26, 2014
Report
#2014-FW-1006
CTX Mortgage Company LLC, Dallas TX, Allowed the Recording of Prohibited Restrictive Covenants
We conducted a limited review of Federal Housing Administration (FHA) loans underwritten by CTX Mortgage Company LLC. We selected the lender based on the results of an auditability survey, which determined that CTX Mortgage allowed prohibited restrictive covenants to be filed against Federal Housing Administration (FHA)-insured properties. The objective of our review was to determine the extent to which CTX Mortgage failed to prevent the...
Abril 18, 2013
Memorandum
#2013-LA-1803
SWBC Mortgage Corporation Did Not Folow HUD-FHA Underwriting Requirements in 1 and Had Minor Deficiencies In 3 of 10 Single Family Loans
We audited SWBC Mortgage Corporation, a Federal Housing Administration (FHA) direct endorsement lender in San Antonio, TX. We selected the lender for audit because as of September 30, 2011, it had 25 seriously delinquent loans. Our objective was to determine whether the lender originated single-family home loans in accordance with U. S. Department of Housing and Urban Development (HUD) and FHA requirements for loans with amortization dates...
Mayo 15, 2012
Report
#2012-FW-1007
J&M Mortgage Brokers, Ltd., Houston, TX, Did Not Comply With HUD-FHA Loan Requirements in Underwriting 6 of 20 Loans
We audited J&M Mortgage Brokers, Ltd., dba Mortgages USA, a Dallas, TX-based nonsupervised direct endorsement lender. We selected J&M because it had a high rate of defaults and claims within the first year. Our audit objectives were to determine whether J&M originated Federal Housing Administration (FHA)-insured single family mortgages in accordance with U. S. Department of Housing and Urban Development (HUD) regulations,...
Marzo 14, 2012
Report
#2012-FW-1006
PrimeLending Mortgage, LLP, Plano, TX, Did Not Always Follow HUD-FHA Underwriting Requirements for 12 of 20 Loans Reviewe
We performed an audit of PrimeLending, A PlainsCaptial Company, located in Dallas, TX, a Federal Housing Administration (FHA) direct endorsement lender. We selected PrimeLending for audit because of its high default rate in the Houston, Dallas, and Fort Worth, TX, offices as compared to the average default rate for all FHA loans in those offices. Our objective was to determine whether PrimeLending complied with U. S. Department of Housing and...
Febrero 27, 2012
Report
#2012-FW-1004
TXL Mortgage Corporation, Houston, TX, Did Not Comply With HUD-FHA Loan Requirements in Underwriting 16 of 20 Home Loans
We audited TXL Mortgage Corporation, a nonsupervised direct endorsement lender located in Houston, TX. We selected TXL due to one of its loan correspondents’ high default rate. Our audit objectives were to determine whether TXL acted in a prudent manner and complied with U.S. Department of Housing and Urban Development (HUD) regulations, procedures, and instructions in the origination and sponsoring of Federal Housing Administration (FHA)-...
Octubre 06, 2011
Report
#2012-FW-1001
AmericaHomeKey, Inc., Dallas, TX, Did Not Follow HUD-FHA Loan Requirements in Underwriting 13 of 20 Manufactured Home Loans
We audited AmericaHomeKey, Inc., a Federal Housing Administration (FHA) direct endorsement lender in Dallas, TX. We selected AmericaHomeKey for audit because during our review of Gold Financial Services (2011-FW-1002), an AmericaHomeKey branch office, we identified three loans originated by one of its underwriters that contained underwriting and valuation deficiencies. Our objective was to determine whether AmericaHomeKey originated...
Septiembre 23, 2011
Report
#2011-FW-1016
WR Starkey Mortgage, LLP, Plano, TX, Did Not Follow HUD Underwriting Requirements for 13 of 14 Loans Reviewed
We performed an audit of WR Starkey Mortgage, LLP (WR Starkey), located in Plano, TX, a Federal Housing Administration (FHA) direct endorsement lender. We selected WR Starkey for audit because of its high default rate of nearly 4.5 percent as compared to the average default rate for all FHA loans in Fort Worth, TX, of 4.1 percent. Our objective was to determine whether WR Starkey complied with U. S. Department of Housing and Urban Development...
Diciembre 16, 2010
Report
#2011-FW-1003
Review of Allied Home Mortgage Capital Corporation's Fiscal Year 2009 Financial Statements
As part of our annual audit plan objective of improving the integrity of single-family insurance programs, we reviewed the independent public accountant’s working papers and the financial statements of Allied Home Mortgage Capital Corporation (Allied) for fiscal year 2009. The objective of the review was to determine whether Allied’s fiscal year 2009 financial statements submitted to the Federal Housing Administration (FHA) accurately reported...
Noviembre 01, 2010
Memorandum
#2011-FW-1801
Gold Financial Services, Inc., San Antonio, TX, Did Not Follow HUD/FHA Requirements in Underwriting Two Loans and Originated a Third in Violation of Its Own Internal Controls
The U. S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) performed an audit of Gold Financial Services, Inc. (Gold Financial), a Federal Housing Administration (FHA) direct endorsement lender and a branch of AmericaHomeKey, Inc., in San Antonio, TX. We selected Gold Financial for audit because its default rate was almost 10 percent for the audit period while the average default rate in the San Antonio area...
Octubre 25, 2010
Report
#2011-FW-1002
Alethes, LLC, Lakeway, TX, Did Not Properly Underwrite a Selection of FHA Loans
We reviewed 20 Federal Housing Administration (FHA) loans Alethes, LLC (Alethes), underwrote as a FHA direct endorser. Our review objective was to determine whether Alethes underwrote the 20 loans in accordance with FHA requirements. This review was 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 Commissioner. The Commissioner...
Septiembre 08, 2010
Memorandum
#2010-LA-1807
Americare Investment Group, Arlington, TX, Did Not Properly Underwrite a Selection of FHA Loans
We reviewed 19 Federal Housing Administration (FHA) loans Americare Investment Group (Americare) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Americare underwrote the 19 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...
Agosto 06, 2010
Memorandum
#2010-LA-1805
Alacrity Lending Company, Southlake, TX, Did Not Properly Underwrite a Selection of FHA Loans
We reviewed 20 Federal Housing Administration (FHA) loans that Alacrity Lending Company (Alacrity) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Alacrity 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...
Julio 26, 2010
Memorandum
#2010-LA-1803
Enterprise Home Ownership partners-Dallas, INC., Dallas, TX Achieved Program Objectives But Did Not Fully Comply With Certain Requirements
We audited the U. S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG), Supplemental II Disaster Recovery program funds, administered by the Texas Department of Housing and Community Affairs (TDHCA). Specifically, we wanted to determine whether TDHCA monitored its program management firm (the Firm) to ensure compliance with Federal and State regulations and to ensure costs reimbursed for the Housing...
Febrero 17, 2009
Report
#2009-FW-1006
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...
Septiembre 25, 2008
Report
#2008-FW-1013
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,...
Julio 14, 2008
Report
#2008-FW-1010
Alethes Mortgage, LLC, and Its Dallas, Texas, Branch, Waters Edge Mortgage, LLC, Did Not Comply with All HUD Underwriting Requirements
Junio 08, 2007
Report
#2007-FW-1010