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Report Fraud, Waste and Abuse
8 items
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    Date Issued
    Summit Construction and Environmental Services, LLC, Richmond, VA Generally Complied With Requirements for Lead-Based Paint Evaluations
    We audited Summit Construction and Environmental Services, LLC, because we received an anonymous complaint alleging that Summit Construction (1) did not perform lead-based paint evaluations in a timely manner, (2) did not produce adequate lead-based paint inspection reports in accordance with applicable requirements, and (3) showed favoritism toward certain contractors performing lead-paint inspections.  Our objective was to determine…
    September 25, 2019
    Report
    #2019-PH-1005
    The Virginia Housing Development Authority, Richmond, VA, Did Not Always Accurately Report Its Servicing Actions in HUD’s Single Family Default Monitoring System
    We audited the Virginia Housing Development Authority’s implementation of the U.S. Department of Housing and Urban Development’s (HUD) Loss Mitigation program for loans insured by the Federal Housing Administration (FHA).  We conducted the audit because the Authority had the largest active portfolio and the largest number of delinquent loans for servicers located in Virginia as of October 31, 2014.  Our objectives were to determine…
    September 30, 2015
    Report
    #2015-PH-1007
    LoanCare Did Not Always File Claims for Foreclosed-Upon Properties Held on Behalf of Ginnie Mae and Convey Them to FHA in a Timely Manner
    The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited LoanCare, LLC, Virginia Beach, VA regarding its post-foreclosure activities as a single family master subservicer for the Government National Mortgage Association (Ginnie Mae).  Our objective was to determine whether LoanCare conveyed foreclosed-upon properties held on behalf of Ginnie Mae, filed claims with FHA, and remitted the funds to Ginnie…
    September 30, 2015
    Report
    #2015-KC-1012
    New Day Financial, LLC, Fulton, MD, Ensured Loans Met FHA Requirements
    We reviewed 32 Federal Housing Administration (FHA) loans that New Day Financial, LLC, underwrote as a U.S. Department of Housing and Urban Development (HUD) FHA direct endorsement lender. We conducted the review as a result of a risk model assessment that identified mortgage lenders that were at high risk to cause losses to the FHA insurance fund. New Day was one of the lenders identified that made insurance claims within the first 2 years of…
    March 07, 2013
    Memorandum
    #2013-PH-1802
    NFM, Inc., Linthicum, MD, Did Not Fully Implement Its Quality Control Plan in Accordance With HUD Requirements
    We audited NFM, Inc. (NFM), a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. We selected NFM based on significant risk indicators, which included a high percentage of loans with front- and/or and back-end ratios in excess of U.S. Department of Housing and Urban Development (HUD) requirements and loans defaulting within six or fewer payments. Our objective was to determine whether…
    November 09, 2010
    Report
    #2011-PH-1004
    Dell Franklin Financial, LLC, Millersville, MD, Did Not Properly Underwrite a Selection of FHA Loans
    We reviewed 20 Federal Housing Administration (FHA) loans that Dell Franklin Financial, LLC (Dell), underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Dell underwrote the 20 loans in accordance with FHA requirements. This review is part of Operation Watchdog, an Office of Inspector General (OIG) initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA…
    July 30, 2010
    Memorandum
    #2010-CH-1810
    Prospect Mortgage, LLC, Fairfax, VA, Generally Complied With HUD Requirements Regarding FHA-Insured Single-Family Loans
    We audited the Fairfax, VA, branch office (branch office) of Prospect Mortgage, LLC (Prospect Mortgage), because it had one of the highest default rates for U.S. Department of Housing and Urban Development (HUD)-approved lenders for loans issued in the State of Maryland. Our objective was to determine whether Prospect Mortgage and its branch office complied with HUD regulations, procedures, and instructions in the origination and quality…
    June 22, 2010
    Report
    #2010-PH-1010
    Residential Home Funding Corporation, Gaithersburg, MD, Did not Always Comply With HUD Requirements in Origination FHA-Insured Single-Family Loans
    We audited Residential Home Funding Corporation, a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. Residential Home Funding Corporation has one office located in Gaithersburg, Maryland. We selected Residential Home Funding Corporation because its default rate was significantly higher than the average default rate for the State of Maryland. Our objective was to determine whether…
    January 20, 2010
    Report
    #2010-PH-1004