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

    … and Freddie Mac provide the bulk of the insurance for residential mortgages. Because Quicken doesn’t keep the loan, the money they make is from the commission. When the loan is sold, they make their commission. If the loan later defaults, Uncle Sam and the Federal Housing Administration is on the hook, not Quicken. (That means taxpayers!) Quicken…

    Due Diligence- 19 readers -
  • Mortgage Underwriting Fraud in 2016 – Whistleblower Post

    … qualify if backed by the FHA or VA. Loans by Fannie Mae and Freddie Mac also qualify. If you have inside information about wrongdoing, we help you investigate and file a sealed lawsuit in federal court. Ultimately the Justice Department can take over the case or allow us to prosecute. While being investigated, the case is usually sealed meaning…

    Due Diligence- 18 readers -
  • Reverse Mortgages – New Class Action Opportunity

    … to making false claims about their products, RMS also used high pressure sales tactics and told some potential borrowers that they had to decide that day to apply or lose eligibility. Aegean Financial (Jubilados Financial) The third lender targeted by the CFPB was Aegean Financial. Based in California, Aegean operates in just five states. It also…

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

    … that are guaranteed by the government. Today, most home loans are sold immediately after closing. Investors won’t buy those loans unless guaranteed. The FHA, VA, Fannie Mae, Freddie Mac and a few private insurers offer these guarantees. Because Fannie and Freddie are under a government conservatorship, most loans are today backed by taxpayers. Lenders can issue…

    Due Diligence- 19 readers -
  • Think Glink

    … lots of inside information. He was first employed by Allied in 1998 and he was a very successful branch manager. He built branches in Massachusetts, Rhode Island, Missouri, West Virginia and Arizona – and was one of their largest producers in the company. HUD passed a regulation in 2000 that said lenders – banks or nonbank lenders like Allied…

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

    … or Freddie Mac. If a company outsources work and fails to meet regulatory requirements the conduct may be a violation of Act. Ditto if the outsourcing results in poor quality mortgages. Underwriters must certify they are in compliance with all regulations and lending guides. A company that knowingly lies can be subject to significant penalties. The Act…

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

    … years, the Justice Department has paid over $1 billion in whistleblower awards. $435 million was paid in 2014 alone. To earn an award, one must have original source (“inside”) information about wrongdoing involving government programs or funds. In residential mortgages, that means loans guaranteed by the FHA, VA, Fannie Mae or Freddie Mac. If you…

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

    … wrote FHA backed loans, it’s wrongdoing qualified under the statute. (Fannie Mae and Freddie Mac loan programs now qualify too since Congress extended the law to them after the 2008 financial crisis.) The False Claims Act is quite popular today because the first to file whistleblower can receive up to 30% of whatever the government collects. The law…

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

    …Whistleblower Didn’t Live to See Landmark Allied Mortgage Verdict, Taxpayers Recover $92 Million by ML McLaren | Link to original source (117K) In May, 2011, Peter Belli filed a complaint in Boston. With guidance from whistleblower experts at Mahany Law, he accused Allied Home Mortgage Capital Corporation of massive mortgage fraud in a False…

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

    … of these loans, the FHA guaranteed these loans. (This is much like Fannie Mae, Freddie Mac and the VA back loans.) If the loan later defaults, the government is on the hook for any deficiency. Without these loan guarantees, no one would buy these loans and there wouldn’t be any mortgage money available for home buyers. Allied was caught…

    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

    … whistleblower statute known as the False Claims Act. The Justice Department this week reports that BB&T is paying a whopping $83 million to settle charges surrounding its FHA residential loan program. Prosecutors say that the North Carolina based bank underwrote FHA insured mortgages that didn’t meet quality control standards. That is a big…

    Due Diligence- 17 readers -
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