Hud

The United States Department of Housing and Urban Development (HUD) is a Cabinet department in the Executive branch of the United States federal government. Although its beginnings were in the House and Home Financing Agency, it was founded as a Cabinet department in 1965, as part of the "Great Society" program of President Lyndon Johnson, to develop and execute policies on housing and metropolises.
Posts about Hud
  • Whistleblower Suit Against Quicken Loans Proceeds

    … appraisers and underwriters to fudge numbers simply to close loans. They say he has defrauded taxpayers of millions of dollars. In April of 2015, the U.S. Department of Justice sued Quicken Loans under the False Claims Act, a Civil War anti-fraud statute. The government wants Quicken to pay tens of millions in fines and penalties. According…

    Due Diligence- 19 readers -
  • Reverse Mortgages – New Class Action Opportunity

    … are guaranteed by the Federal Housing Administration (FHA). Others like Fannie Mae also have similar guaranty programs. Because these products have federal backing, issuers like AAG, RMS and Aegean must certify their loans are I compliance with all HUD and FHA guidelines. Unless the housing market really crashes, taxpayers probably won’t have…

    Due Diligence- 12 readers -
  • USFS Settles Crisis Era False Claims Act Mortgage Fraud Case

    … Settlement with United Shore Financial Services The case against United Shore was prosecuted by the Department of Justice and the Inspector General of HUD. The Office of the Inspector General is the law enforcement arm of HUD. Prosecutors in Washington DC, Madison, Wisconsin and Detroit participated in the case. In announcing the settlement, a Justice…

    Due Diligence- 19 readers -
  • Think Glink

    … case and how the verdict could impact the financial industry moving forward. Please note: This interview has been edited for length and clarity. What is the False Claims Act? How do these cases work? The False Claims Act was passed when Abraham Lincoln was president during the Civil War. The government was broke – a lot like it is now – and vendors…

    Due Diligence- 35 readers -
  • Is Outsourcing a Dirty Word for Mortgage Underwriters?

    … is nothing new… banks and RMBS trusts often outsource servicing work to large U.S. based servicers. Lately, however, outsourcing seems to be synonymous with offshoring. A HousingWire story from 2014 claims that Ocwen sent 73% of its servicing work offshore that year. The same article claimed that JPMorgan Chase, Citi and Nationstar were also sending…

    Due Diligence- 12 readers -
  • Allied and Jim Hodge… What Next?

    … the company was shut down by HUD, Allied lost much of its borrowing capacity. Like most banks and lenders today, Allied makes it money when it sells a loan. Their profit is the commission they earn when the loan is made and underwritten. Since they are not a bank, they borrow money to reloan it. As Allied’s creditors stopped the flow of capital…

    Due Diligence- 13 readers -
  • More Details on Allied Home Mortgage and Jim Hodge Emerge

    … not getting paid. (Many didn’t get paid anyway.) By 2006 and 2007, HUD says that almost 55% of the loans coming out of Allied were bad. The compliance department was paper thin and wasn’t interested in compliance. The government’s complaint, which is available here, said, “Allied utterly failed to conduct audits of its branches or review its early…

    Due Diligence- 10 readers -
    Earlier about the same topic:
  • Whistleblower News Review

    … in fact they were not. Belli had managed several Allied branches in Massachusetts, Rhode Island, Arizona, and other states. He was thus in an ideal position to observe Allied Capital’s fraudulent practices, and he was determined to bring the scheme to light. Unfortunately, he passed away before the verdict came out only days ago in Texas…

    Due Diligence- 19 readers -
  • BREAKING NEWS: Huge Win in Allied Home Mortgage Fraud Case

    … was a former manager for Allied. In the run up to the financial crisis, Allied Home Mortgage was one of the largest FHA lenders in the nation. Original Whistleblower Complaint Against Allied Home Mortgage We are proud to have filed this action. According to our original complaint, Allied operated a net branch scheme in violation of HUD rules. Since…

    Due Diligence- 13 readers -
  • From Shadow Branches to Shadow Banks… (Whistleblower Post)

    …. Shadow Branch Schemes Before HUD pulled the plug on the company, Allied allegedly operated what is called a “shadow branch” scheme. Shadow branches – sometimes called “net branches” – are satellite offices of a bank or lender. They are called “shadows” because they usually lack necessary licenses and the financial backing of the lender. HUD doesn’t…

    Due Diligence- 11 readers -
  • Freedom Mortgage – VA Loans – ACTIVE INVESTIGATION

    … of FHA loans. In the earlier case, Freedom paid $113 million to settle charges that the company routinely violated FHA underwriting guidelines. Prosecutors said the company failed to comply with HUD origination, underwriting and quality control guidelines. Despite paying $113 million in penalties, the company publicly refused to admit any…

    Due Diligence- 14 readers -
  • Anatomy of a Fraud – U.S. v Allied Home Mortgage Goes to Trial

    … Allied Home Mortgage was once the largest privately held FHA lender in the United States. It wrote more mortgages than many big banks. That all came to a crushing halt in November 2011 when the U.S. Department of Justice intervened in a False Claims Act claim filed by a former branch manager turned whistleblower. At the same time, HUD took its…

    Due Diligence- 42 readers -
  • BB&T Pays $83 Million Settles Mortgage False Claims Act Beef

    … the bank. HUD requires robust quality control monitoring and self-reporting. If you are going to issue taxpayer insured loans, Uncle Sam wants to make sure you continuously and careful monitor those loans and quickly report problems BB&T’s quality control department requested staff to comply with the monitoring requirements but was ignored for years…

    Due Diligence- 17 readers -