Beware of Targeted Reverse Mortgage Schemes
Fraudsters can take advantage of older adults by pressuring or helping them obtain funding for home repairs by applying for a reverse mortgage and then stealing the funds from the reverse mortgage. In this fraud bulletin, HUD OIG shares a recent case example where the fraudster was sentenced to more than 17 years in prison and provides tips on how senior homeowners can avoid reverse mortgage scams by purported contractors.
Fraud bulletins or alert
MidFirst Bank Misapplied FHA's Foreclosure Requirements, Oklahoma City, OK
Analyze MidFirst’s resolution of the manual process issues identified during its 2022 quality control review to verify that it remedied the borrowers or HUD and corrected the issues identified related to manual processing.
MidFirst Bank Misapplied FHA's Foreclosure Requirements, Oklahoma City, OK
Require MidFirst to remedy the 24 borrowers in our sample with improper foreclosure filings or take administrative actions if appropriate.
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD's Requirements
Repay from nonfederal funds its HUD programs $4,000 paid for an ineligible 2011 training conference.
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD's Requirements
Provide support for the reasonableness of the unit repairs costs totaling $44,994 and repay from nonfederal funds any unsupported or unreasonable amount.
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD's Requirements
Provide training for the Authority’s commissioners on their responsibilities and duties.
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD's Requirements
Require the Authority to update its policies and procedures so that they contain current Federal guidance.
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD's Requirements
We recommend that the Director, Departmental Enforcement Center take appropriate administrative sanctions, including suspension, limited denial of participation, or debarment against the executive director.
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD's Requirements
We recommend that the Director, Departmental Enforcement Center seek civil money penalties, as appropriate, against the executive director.
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD's Requirements
We recommend that the Associate General Counsel for Program Enforcement determine legal sufficiency and, if legally sufficient, pursue remedies under the Program Fraud Civil Remedies Act against the executive director.
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD's Requirements
Provide technical assistance to the Mayor and the board concerning their responsibilities regarding the Authority.
The Housing Authority of the City of Jasper, TX, Did Not Operate Its Public Housing Programs in Compliance With HUD's Requirements
Monitor the Authority to ensure it is holding its board meetings, as required by its bylaws.
HUD's Oversight of Section 108 Loans Was Not Adequate To Ensure Compliance With Program Requirements
Reevaluate the feasibility of the two Section 108 activities that failed to meet a national objective and determine the eligibility of the $15,814,000 already invested. Any amount determined ineligible must be reimbursed to the program from non-Federal funds.
HUD's Oversight of Section 108 Loans Was Not Adequate To Ensure Compliance With Program Requirements
Require the borrowers to submit a plan for how they will proceed and use the $8,694,000 million in unused commitments to provide the intended benefits and meet program objectives.
HUD's Oversight of Section 108 Loans Was Not Adequate To Ensure Compliance With Program Requirements
Require the borrower to provide all supporting documentation and evaluate the allowability and eligibility of $75,000 used for the unauthorized activity. Any amount determined ineligible must be reimbursed to the program from non-Federal funds.
HUD's Oversight of Section 108 Loans Was Not Adequate To Ensure Compliance With Program Requirements
Develop procedures directing field offices to include the review of Section 108-funded activities when performing the annual reviews of Block Grant recipients.
HUD's Oversight of Section 108 Loans Was Not Adequate To Ensure Compliance With Program Requirements
Develop procedures to ensure that the information necessary to monitor program performance and compliance with program requirements is promptly provided to the field offices.
HUD's Oversight of Section 108 Loans Was Not Adequate To Ensure Compliance With Program Requirements
Implement procedures to ensure that borrowers comply with all loan contract provisions and that required documents are submitted, including bank agreements, monthly statements, and security documents. If a borrower does not provide evidence that it has complied with all program requirements, HUD must initiate appropriate remedial actions under paragraph 12 of the contract.
HUD's Oversight of Section 108 Loans Was Not Adequate To Ensure Compliance With Program Requirements
Develop and implement a tracking system for monitoring reviews of Section 108 loans.
HUD's Internal Audit Requirement for Disaster Relief Appropriations Act of 2013 Grantees
Provide clearer guidance and instruction to PL 113-2 disaster grantees to assist them in establishing an effective internal audit activity.