Items Tagged with 'HUD-OIG'

ARTICLES

  • Watchdog: FHA incorrectly insured $1.9 billion in mortgages in 2016

    HUD-OIG report finds FHA insured nearly 10,000 ineligible borrowers
    A new report from a federal watchdog finds that the Federal Housing Administration incorrectly insured approximately $1.9 billion worth of mortgages in 2016. The new report, which was published recently by the Department of Housing and Urban Development Office of Inspector General, found that in 2016, the FHA insured an estimated 9,507 borrowers who were actually ineligible for FHA insurance.
    Read More
  • Scandal: Former staffer at National Community Stabilization Trust among 7 indicted for foreclosure profiteering

    Accused of taking bribes to funnel foreclosures to certain nonprofits
    The former director of community development at the National Community Stabilization Trust, a national nonprofit that works to stabilize communities affected by the foreclosure crisis, is among seven people indicted last month for allegedly participating in a conspiracy to profiteer off of foreclosures. According to the U.S. Attorney’s Office for the District of Nevada, Sergio Barajas allegedly accepted bribes to funnel foreclosures to certain nonprofits.
    Read More
  • Watchdog: Ginnie Mae wasn't ready for nonbank mortgage lending boom

    OIG report notes that Ginnie Mae made progress on oversight, but issues remain
    Over the last few years, Ginnie Mae experienced a significant shift in its business, with its share of nonbank originations rising from 11% in 2011 to 75% this year. But, according to a new report from a government watchdog, Ginnie Mae was not prepared for the rise of nonbank mortgage lending and “did not adequately respond” to the changes in its lender base.
    Read More
  • Field services provider Cityside Management pays $4.3M to settle False Claims Act allegations

    Accused of lying to HUD about supervising rehab work
    Cityside Management Corporation, a field services provider, paid $4.3 million to settle allegations that the company lied to the Department of Housing and Urban Development about supervising rehab work on HUD-owned houses. According to the U.S. Attorney’s Office and HUD-OIG, Cityside Management paid the $4.3 million to settle charges that it violated the False Claims Act by “improperly billing” HUD for work supposedly done by Cityside’s subcontractors.
    Read More
  • Urban Institute: HUD watchdog is wrong on borrower-financed down payment programs

    Says HUD-OIG misunderstands, overstates issue
    A recent report from HUD's watchdog said that HUD does not have sufficient oversight of borrower-financed down payment assistance programs for FHA-insured loans, which puts borrowers and the FHA’s flagship insurance fund at “unnecessary risk.” Analysts from the Urban Institute reviewed the report as well, and came to a different conclusion: HUD’s watchdog is wrong to call out the down payment assistance programs.
    Read More
  • HUD watchdog: Servicer foreclosure delays cost FHA $2.23 billion

    Report finds FHA overpaid servicers due to foreclosure, conveyance delays
    A new report from a government watchdog shows that mortgage servicers’ delays in foreclosing on properties and subsequent delays in the conveyance of those properties to the Federal Housing Administration cost the FHA as much as $2.23 billion in unnecessary payouts.
    Read More
  • EXCLUSIVE: Security vulnerabilities discovered in FHA systems

    Watchdog review discovers weakness in government's systems
    Some of the systems used by the Federal Housing Administration’s single-family insurance program are vulnerable to security breaches, an investigation by the agency’s watchdog uncovered recently. Details on the nature of the “vulnerabilities” are limited at this point, as the Office of the Inspector General for the Department of Housing and Urban Development chose not to share the full results of its investigation with the public.
    Read More
  • HUD watchdog warns of scammers offering phony housing grants

    Scheme offers HUD grant money in exchange for upfront fee
    The Department of Housing and Urban Development's watchdog is warning consumers to be on the lookout for a scam that promises HUD grant money in exchange for an upfront fee. In each case, the “HUD representative” asks the consumers for an upfront fee in order to process and secure a “HUD grant” for tens of thousands of dollars, but there is no grant money to be had.
    Read More