We audited First Source Bank, a Federal Housing Administration (FHA) supervised lender located in South Bend, IN.  We selected First Source based on our analysis of risk factors of single-family loan servicers in Region 5’s jurisdiction4.   Our audit objectives were to determine Read More

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program.  Having multiple loans violated program requirements because HUD requires borrowers to Read More

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 Read More

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) assisted in an investigation into alleged violations of Federal Housing Administration (FHA) regulations by Taylor, Bean & Whitaker Mortgage Corporation and Home America Mortgage, Inc.  The Read More

HUD OIG assisted the U.S. Attorney’s Office, Northern District of Illinois, in the investigation of Lakeview Sheridan, LLC, and Fremont Sheridan Properties.  Lakeview Sheridan is a multifamily property located in Chicago, IL, and Fremont Sheridan was the management company for Lakeview Read More

We audited St. Francis Hospital, Inc. because the U.S. Department of Housing and Urban Development (HUD), Office of Hospital Facilities, requested immediate assistance from HUD’s Office of Inspector General (OIG) to review suspected violations of the hospital’s regulatory agreement and rider ( Read More

(Source: USAO, DC) WASHINGTON – Nine individuals have been sentenced on federal charges stemming from a mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland. The sentences were Read More

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program.  Having multiple loans violated program requirements because HUD requires borrowers to Read More

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program based on our strategic objective to protect the integrity of housing insurance and guarantee programs and because of residency issues identified in prior audits Read More

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 Read More

WASHINGTON – Edward Dacy, 77, most recently of West Melbourne, Fla., was sentenced today to six years in prison on charges stemming from a multi-million dollar mortgage fraud scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real Read More

The U.S. Department of Housing and Urban Development – Office of Inspector General audited Berkadia Commercial Mortgage, LLC’s underwriting of the loan to fund the renovation of the Temtor project in St. Louis, MO.  We initiated this audit because the project failed quickly after completion, Read More

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Section 203(k) Rehabilitation Loan Mortgage Insurance program as part of the activities in our fiscal year 2014 annual audit plan.  Our audit objective was to determine whether HUD had adequate oversight Read More

NEWARK N.J. – A Nutley, New Jersey, man was sentenced today to 24 months in prison for his role in a massive mortgage fraud scheme involving multiple properties in Elizabeth, New Jersey, U.S. Attorney Paul J. Fishman announced. Kenneth Sweetman, 34, previously pleaded guilty before U.S. District Read More

(Source: USDOJ) Baltimore, Maryland –Alberic Okou Agodio, age 30, of Bethesda, Maryland, pleaded guilty today to conspiracy, wire fraud, and aggravated identity theft, arising from a mortgage fraud scheme in which he used the names of immigrants and students, along with false financial information Read More

CHICAGO—A west suburban real estate broker was sentenced today to 16 months in federal prison for his role in a mortgage fraud scheme involving a pair of Chicago apartment buildings. GEORGE DRAVILAS, 37, of Medinah, pleaded guilty in February to one count of bank fraud. In addition to the prison Read More

We audited NOVA Financial & Investment Corporation based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division detailing a separate lender that originated Federal Housing Administration (FHA)-insured loans that contained ineligible Read More

We audited Prudential Huntoon Paige Associates, LTD’s underwriting of a $19.9 million mortgage loan to develop Amaranth at 544, a senior multifamily project located in Lewisville, TX.  We initiated the review based on the early default, assignment, and significant amount of the project. Read More

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General selected the Hidden Lake Care Center for review based on a news article entitled “Poorly Rated Nursing Homes Got HUD Guaranteed Mortgages Anyway,” published by the Center for Public Integrity.  The article Read More

We completed a review of First Niagara Bank’s servicing of Federal Housing Administration (FHA)-insured mortgages and its implementation of the U.S. Department of Housing and Urban Development’s (HUD) Loss Mitigation program.  We selected First Niagara Bank based on an Office of Inspector Read More