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, in the civil investigation of Quicken Loans, Inc.  The investigation was of Quicken’s origination, underwriting, endorsement, and related certifications of Federal Housing Administration (FHA)-insured mortgage loans between September 1, 2007, and December 31, 2011. …

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…

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…

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…

We audited Prudential Huntoon Paige Associates, LTD’s underwriting of a $22.8 million mortgage loan to refinance Lafayette Towers Apartments, a 584-unit highrise multifamily project in Detroit, MI.  We initiated the review based on the early default, assignment, and significant amount of the project.  Our objective was to determine whether Prudential underwrote and processed the loan for Lafayette Towers according to the U.S…

We audited Lake Village of Fairlane Apartments as part of the activities in our fiscal year 2014 annual audit plan.  We selected the project based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Multifamily Housing Programs.  Our objective was to determine whether the project’s owner and former management agents operated the project in accordance with HUD’s requirements and…

We audited the Lake Village of Auburn Hills multifamily project as part of the activities in our fiscal year 2014 annual audit plan.  We selected the project based on a request from the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Multifamily Housing.  Our objective was to determine whether the project’s owner and former management agents operated the project in accordance with the regulatory…

We audited the Michigan State Housing Development Authority’s multifamily project-based Section 8 program for new-regulation projects as part of the activities in our fiscal year 2013 annual audit plan.  We selected the Authority based on a referral from U.S. Department of Housing and Urban Development (HUD) management.  Our objective was to determine whether the Authority administered its program in accordance with HUD’s…

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…

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…

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…

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…

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…