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Report Fraud, Waste and Abuse

The Offices of Audit and Evaluation supervise and conduct independent and objective audits, evaluations, and other reviews of U.S. Department of Housing and Urban Development (HUD) programs and activities to ensure they operate economically, efficiently, and effectively. This page contains links to our audit and evaluation reports and memoranda.

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    Towne Mortgage Company, Troy, MI, Generally Implemented Its Loss Mitigation Program in Accordance With HUD’s Requirements
    We audited Towne Mortgage Company, a Federal Housing Administration (FHA) nonsupervised lender, as part of the activities in our fiscal year 2018 annual audit plan.  We selected Towne Mortgage based on our analysis of risk factors for single-family servicing lenders in Region 5’s jurisdiction.[1]  Our audit objective was to determine whether Towne Mortgage properly implemented its Loss Mitigation program for FHA-insured…
    September 18, 2018
    Report
    #2018-CH-1005
    Final Civil Action: GTL Investments, Inc., Doing Business as John Adams Mortgage Company Settled Allegations of Failing To Comply With HUD’s FHA Loan Requirements
    The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG), in coordination with the U.S. Attorney’s Office for the Eastern District of Michigan, conducted a review of GTL Investments, Inc., doing business as John Adams Mortgage Company regarding its originations, underwriting, quality control, and endorsement of Federal Housing Administration (FHA) loans. The U.S. Government contended that it had…
    September 30, 2015
    Memorandum
    #2015-CH-1801
    Member First Mortgage, LLC, Grand Rapids, MI, Generally Implemented Its Loss Mitigation and Quality Control Programs in Accordance With HUD’s Requirements
    We audited Member First Mortgage, Limited Liability Company, a Federal Housing Administration (FHA) nonsupervised servicer as part of the activities in our fiscal year 2015 annual audit plan.  We selected Member First based upon our analysis of risk factors for single-family servicing lenders in Region 5’s jurisdiction.   Our audit objectives were to determine whether (1) Member First complied with the U.S. Department…
    September 10, 2015
    Report
    #2015-CH-1005
    Michaelson, Connor, and Boul, Southfield, MI, Did Not Provide Adequate Oversight of Closings on the Sales of HUD Real Estate-Owned Homes
    The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) audited Michaelson, Connor, and Boul, Incorporated (MCB), a management and marketing contractor for HUD real estate-owned properties in Michigan. We selected MCB based on the results of our audit of Custom Closing, a HUD-designated closing agent for the State of Michigan (see OIG audit report #2009-CH-1021, issued September 2009). Our…
    September 15, 2010
    Report
    #2010-CH-1012
    D & R Mortgage Corporation, Farmington Hills, MI, Did Not Properly Underwrite a Selection of FHA Loans
    The U.S. Department of Housing and Urban Development's Office of Inspector General (OIG) reviewed 15 Federal Housing Administration (FHA) loans that D & R Mortgage Corporation (D & R) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether D & R underwrote the 15 loans in accordance with FHA requirements. This review is part of Operation Watchdog, an OIG initiative to review the…
    August 04, 2010
    Memorandum
    #2010-CH-1811
    Mac-Clair Mortgage Corporation, Flint, MI, Did Not Properly Underwrite a Selection of FHA Loans
    The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General (OIG) reviewed 20 Federal Housing Administration (FHA) loans that Mac-Clair Mortgage Corporation (Mac-Clair) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Mac-Clair underwrote the 20 loans in accordance with FHA requirements. This review is part of “Operation Watchdog”, an OIG initiative to…
    July 22, 2010
    Memorandum
    #2010-CH-1808
    Birmingham Bancorp Mortgage Corporation, West Bloomfield, MI, Did Not Properly Underwrite a Selection of FHA Loans
    The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General (OIG) reviewed 20 Federal Housing Administration (FHA) loans that Birmingham Bancorp Mortgage Corporation (Birmingham) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Birmingham underwrote the 20 loans in accordance with FHA requirements. This review is part of “Operation Watchdog,” an OIG…
    July 21, 2010
    Memorandum
    #2010-CH-1807
    Custom Closing Services, Incorporated, Farmington Hills, Michigan, Did Not Always Comply with Its Contract When Closing Sales of HUD Real Estate-Owned Properties
    The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General performed an audit of Custom Closing Services, Incorporated (Custom), a contractor closing sales of HUD real estate-owned properties in the state of Michigan. The audit was conducted based on a complaint to our hotline alleging that Custom caused significant delays in the closing of HUD homes in Michigan. Our audit objective was to determine…
    September 30, 2009
    Report
    #2009-CH-1021