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Date Issued
September 28, 2017
Closed Date
January 05, 2018
OIG Component Office
Repay HUD $26,242 for partial claims paid on two FHA loans that contained prohibited restrictive covenants.
Program Office
Questioned Costs
Better Funds Use
Publication Report Number

Related Recommendations

Recomendation Status Date Issued Summary
2017-LA-1803-001-A Closed September 28, 2017 Work with HUD to nullify the restrictions on conveyance that violate HUD policy or indemnify HUD. This action will protect HUD against future losses of $2,434,204 for the 49 loans.
2017-LA-1803-001-C Closed September 28, 2017 Develop and implement policies and procedures to identify prohibited restrictions on conveyance to ensure that it does not originate FHA loans with prohibited restrictive covenants.
2017-LA-1803-001-D Closed September 28, 2017 Provide training to its employees regarding HUD’s requirements related to prohibited restrictions on conveyance.
2017-LA-1803-001-E Closed September 28, 2017 Determine legal sufficiency and if legally sufficient, pursue civil and administrative remedies, civil money penalties, or both against RMS, its principals, or both for incorrectly certifying to the eligibility for FHA mortgage insurance or that due diligence was exercised during the origination of FHA loans.