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Peoples Home Equity, Inc., Brentwood, TN, Did Not Follow HUD Requirements in Approving FHA Loans and Implementing Its Quality Control Program
We audited Peoples Home Equity, Inc.(Peoples), a Federal Housing Administration (FHA) approved nonsupervised direct endorsement lender located in Brentwood, TN. We selected Peoples based on its high default rates. The audit was part of our annual audit plan to review single family programs and lenders. Our audit objectives were to determine whether Peoples complied with HUD requirements when it originated and underwrote FHA loans, and implemented its quality control program.
Peoples did not always originate and underwrite FHA insured loans in accordance with HUD require
Memorandum Report on the Office of Inspector General’s Internal Audit of HUD’s Single Family Seven-Loan Limit
The U.S. Department of Housing and Urban Development – Office of Inspector General audited HUD’s Federal Housing Administrations single family mortgage seven-loan limit. We initiated this review based on issues identified in an audit of the Wyoming Housing Opportunities Association in memorandum 2013-DE-1801. Our objective was to determine the impact of investor loan properties on the FHA fund.
We found multiple instances of investors deferring maintenance on their investment property.
EverBank Did Not Properly Determine Mortgagor Eligibility for FHA’s Preforeclosure Sale Program
We audited EverBank’s Preforeclosure Sale Program because it had the highest Florida preforeclosure sale claims of all servicing lenders located in Florida and more than 50 percent of its Florida Federal Housing Administration (FHA) claims were from preforeclosure sales with more than $12.9 million paid from 2011 through 2013. Our objective was to determine whether EverBank properly determined that mortgagors were eligible to participate in FHA’s Preforeclosure Sale Program.
EverBank did not properly determine that mortgagors were eligible to participate in FHA’s Preforeclosure Sale Prog
Cornerstone Home Lending, Houston, TX, Did Not Adequately Underwrite 16 Loans, Violated the Real Estate Settlement Procedures Act, and Did Not Implement an Adequate Quality Control Plan During Our Review Period
We audited Cornerstone Home Lending, formerly known as Cornerstone Mortgage Company. We selected Cornerstone based upon a high default rate at Cornerstone’s Branch 87 in 2007 through 2009. Our audit objectives were to determine whether Cornerstone (1) complied with HUD and Federal Housing Administration (FHA) regulations when originating and underwriting FHA-insured mortgages and (2) implemented a quality control plan that met requirements.
During the review period, Cornerstone (1) did not comply with HUD and FHA requirements when underwriting 16 of 34 loans, (2) violated RES
Final Civil Action – Judgment Imposed on Loan Officer Regarding Allegations of Making a False Certification to HUD for a Home Purchase Under the Federal Housing Administration Program
We conducted a civil fraud review of an alleged loan origination fraud scheme involving a loan officer that assisted a borrower to purchase a home under the U.S.
Final Civil Action – Reunion Mortgage, Inc. Settled Allegations of Making False Claims to the Federal Housing Administration
We assisted the U.S. Attorney’s Office of the Northern District of California in the civil investigation of Reunion Mortgage, Inc. (Reunion). Reunion is a former Federal Housing Administration (FHA)-approved mortgage lender, with its principal place of business located in Milpitas, CA. Based in large part on our review of loans underwritten by Reunion between December 2007 through October 2009, the U.S.
Final Civil Action – JPMorgan Chase Settled Allegations of Failing to Comply With HUD’s FHA Loan Requirements
We assisted the U.S. Attorney’s Office, Southern District of New York, in conducting an investigation of JPMorgan Chase Bank, N.A., and JPMorgan Chase & Co. (Chase). The investigation began due to a qui tam filing in the U.S.
The Housing Authority of the City of Meridian Did Not Adequately Maintain Its FHA-Insured Rental Apartments
We audited the Housing Authority of the City of Meridian’s Queen City apartments at the request of the U.S.