Approximately 31,500 FHA-Insured Loans Did Not Maintain the Required Flood Insurance Coverage in 2020
The U.S. Department of Housing and Urban Development, Office of Inspector General, has completed its audit of Federal Housing Administration (FHA)-insured loans serviced in calendar year 2020. Our audit objective was to determine whether borrowers of FHA-insured loans maintained proper flood insurance coverage. We found FHA insured at least 31,500 loans serviced during calendar year 2020 for properties in SFHA flood zones that did...
Marzo 22, 2022
HUD does not have a departmentwide policy for dealing with radon contamination. Instead, HUD relies on each program office to develop radon policies that align with HUD’s environmental regulations. The three program offices reviewed do not have consistent radon policies. Only Multifamily’s radon policy includes radon testing and mitigation requirements. PIH’s policy strongly encourages but does not require public housing agencies (...
Abril 12, 2021
In June 2020, we received letters from members of Congress, including the chairpersons of the House Committee on Financial Services and Oversight and Investigation Subcommittee, expressing concern that the U.S. Department of Housing and Urban Development (HUD) imposed a new, nonpublic, and legally erroneous policy that prohibited issuing Federal Housing Administration (FHA)-insured loans to Deferred Action for Childhood Arrivals (DACA...
Marzo 30, 2021
The West Calumet Housing Complex (WCHC), located in East Chicago, IN, was a public housing development that opened in 1972 on top of a former lead smelting plant. HUD and other agencies missed multiple opportunities to identify site contamination at WCHC. As a result, WCHC residents continued living in unsafe conditions for decades, and inadequate oversight led to the lead poisoning of children in WCHC. Between 2005 and 2015, a...
Febrero 14, 2021
Final Civil Action: PrimeLending, a PlainsCapital Company, 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. Department of Justice (DOJ), Washington, DC, and the U.S. Attorney’s Offices for the District of Kansas and the Northern District of Texas in the civil investigation of PrimeLending, a PlainsCapital company. The investigation was of PrimeLending’s origination, underwriting, and quality control of Federal Housing...
Septiembre 30, 2019
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Bank of America because it has released more than 47,000 Federal Housing Administration (FHA)-insured loans into the Distressed Asset Stabilization Program (DASP) note sales program. Since its inception, DASP has facilitated the sale of more than 108,000 FHA loans, which means that Bank of America accounts for nearly half of the entire...
Abril 09, 2019
Louis Manor Apartments, Port Arthur, TX, Multifamily Section 8 Program, Subsidized Unsupported Tenants and Uninspected Units
We audited the multifamily Section 8 Project-Based Rental Assistance (PBRA) program at the Louis Manor Apartments. We selected Louis Manor in accordance with our goal to review the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing programs and because our analysis of Tenant Rental Assistance Certification System data showed red flag indicators at Louis Manor that appeared to be similar to the conditions we...
Agosto 31, 2018
Final Civil Action: The Former Executive Director of the Housing Authority of the City of Beeville, TX, Et Al, Settled False Claims Allegations in the Housing Choice Voucher Program
In violation of the housing assistance payment contract’s conflict-of-interest requirements, the former executive director of the Housing Authority of the City of Beeville, TX, executed housing assistance payment contracts on behalf of the Authority with her brother and sister. The former executive director did not fully disclose the conflicts-of-interest and had not sought a waiver from HUD’s Office of Public and Indian Housing until...
Agosto 21, 2018
Eastwood Terrace Apartments, Nacogdoches, TX, Multifamily Section 8, Subsidized Questionable Tenants, Overhoused Tenants and Uninspected Units
We audited the Eastwood Terrace Apartments multifamily Section 8 Project-Based Rental Assistance (PBRA) program. We selected Eastwood Terrace in accordance with the Office of Inspector General’s (OIG) goal to review HUD’s multifamily housing programs and because the OIG Office of Investigation conducted an investigation and suggested that the complex might not have had appropriate controls to ensure tenant eligibility. Our objective...
Agosto 02, 2018
Villa Main Apartments, Port Arthur, TX, Subsidized Nonexistent Tenants, Unsupported Tenants, and Uninspected Units
We audited the multifamily Section 8 project-based rental assistance (PBRA) program at the Villa Main Apartments. We selected Villa Main in accordance with the Office of Inspector General’s (OIG) goal to review the U.S. Department of Housing and Urban Development’s (HUD) multifamily housing programs and because the OIG Office of Investigation conducted an investigation and suggested that the complex might not have had appropriate...
Enero 30, 2018
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
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...
Agosto 21, 2017
Beverly Place Apartments Subsidized Nonexistent Tenants, Unqualified Tenants, and Tenants With Questionable Qualifications
We audited the multifamily project-based Section 8 program at the Beverly Place Apartments. We selected Beverly Place because we received a complaint of potential fraud, suggesting that the complex did not have appropriate controls to ensure tenant and unit eligibility. Our objective was to determine whether the owner administered its project-based Section 8 program in accordance with U.S. Department of Housing and Urban Development...
Junio 29, 2017
Park View Care Center, Fort Worth, TX, Did Not Always Comply With Its Regulatory Agreement and HUD Requirements
We audited Park View Care Center’s owner based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Departmental Enforcement Center. Our objective was to determine whether the property owner complied with the owner’s regulatory agreement and HUD requirements for the Section 232 program. Park View’s owner did not comply with all the terms of its regulatory agreement and HUD requirements. Specifically, the...
Septiembre 29, 2016
Final Civil Action: The City of Malakoff Housing Authority’s Prior Executive Director Improperly Hired and Contracted With Family Members
We reviewed the Malakoff Housing Authority, Malakoff, TX. The review was part of a joint initiative between the HUD Office of Inspector General’s Office of Audit and Office of Investigation. We completed the review and referred the former executive director’s improper use of Authority funds by hiring and contracting with family members to HUD’s Office of Program Enforcement for action under the Program Civil Fraud Remedies Act of 1986...
Septiembre 13, 2016
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...
Septiembre 28, 2015
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
The Former Owner of Yale Court Apartments, Houston, TX, Used Project Funds in Violation of the Regulatory Agreement with HUD
At the request of the Director of the U.S. Department of Housing and Urban Development’s (HUD) Houston, TX, Office of Multifamily Housing Programs, we conducted a review of Yale Court Apartments (project). Our objective was to determine whether the project owner used the project funds in accordance with its regulatory agreement and HUD regulations. The former owner used more than $3.5 million of the project funds for ineligible and...
Septiembre 22, 2014
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...
Abril 18, 2013
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...
Mayo 15, 2012