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Document

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ) and the U.S. Attorney’s Office for the Southern District of New York in a civil investigation of Residential Home Funding Corp.  Residential Home is a Federal Housing Administration (FHA)-approved mortgage lender having its principal place of business in White Plains, NY.

On September 18, 2017, Residential Home entered into a settlement agreement with the Federal Government to pay $1.67 million.  Residential Home endorsed FHA mortgage insurance loans that did not meet the underwriting requirements.  Between 2004 and 2012, Residential Home knowingly (1) submitted or caused to be submitted to HUD false claims for FHA insurance for some loans that were ineligible for FHA insurance, (2) submitted false annual certifications to HUD attesting to compliance with direct endorsement program rules, and (3) submitted false individual loan certifications to HUD attesting that certain loans were eligible for FHA insurance.  Also, Residential Home did not maintain a quality control program that complied with HUD requirements.

Recommendations

Key Details
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  Open
  Closed
Funds Put to Better Use
Funds Put to Better Use

Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

Questioned Costs
Questioned Costs

Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.

Sensitive
Sensitive

Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.

Priority
Priority

We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

General Counsel

  •   2017-CF-1807-001-A
    $1,670,000.00

    Closed on March 29, 2023

    Acknowledge that $1,670,000 in the attached settlement represents an amount due HUD less DOJ’s civil debt collection fees.