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

    …. Quicken Loans and Commissions Why would Quicken put people in homes they can’t afford? Commissions. Quicken is not a bank. They make home loans but do not keep those loans. Immediately after the loan closes, Quicken sells those loans. Institutional investors won’t buy the loans, however, unless they are insured. Agencies like the FHA, Fannie Mae…

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

    … another mortgage underwriting fraud cases against Primary Residential Mortgage (PRMI). The company agreed to pay $5 million to settle the case. According to the Justice Department, “PRMI admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where: PRMI failed to document the assets used to qualify…

    Due Diligence- 18 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

    … to go to trial. Most others have settled outside of court to avoid having their penalties tripled. The case was filed on November 1, 2011, the same day HUD suspended Allied Home Mortgage and it’s CEO from doing business with it. Wisconsin attorney Brian Mahany represented whistleblower Peter Belli, who came forward and filed the case against Allied…

    Due Diligence- 34 readers -
  • Is Outsourcing a Dirty Word for Mortgage Underwriters?

    … servicing work offshore. Most of that work goes to India and the Philippines. The rating agency Fitch has raised concerns about the industry’s offshoring practices. We share those concerns. Although all aspects of outsourcing and offshoring raise concerns, we especially worry about the latest trend of sending underwriting, loan processing and QC…

    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

    … Claims Act “qui tam” whistleblower lawsuit. Over five years later, and after a trial that lasted five weeks, a jury found both the corporation and its CEO, Jim Hodge, guilty of knowingly representing to Housing and Urban Development (HUD) that certain loans were properly prepared and eligible for Federal Housing Administration (FHA) insurance, when…

    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)

    … relevant and makes us such a great nation today. In 1863, President Abraham Lincoln and Congress gave us a law called the False Claims Act (“FCA”) designed to empower citizen whistleblowers to bring actions against fraud and mismanagement of federal tax dollars. Passed long before the advent of “shadow branches” or “shadow banks,” the FCA is still…

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

    … loan to HUD, despite its obligation to do so. In 2012, after identifying hundreds of loans that “possibly should have been self-reported to HUD,” it reported only one. As a result of Freedom Mortgage’s conduct, HUD insured hundreds of loans that were not eligible for FHA mortgage insurance…” Freedom Mortgage and VA Lending We believe that Freedom…

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

    … HUD-FHA regulations necessary to maintain their HUD-FHA approval to participate in the government mortgage insurance program [FIRREA claim]; In violation of the False Claims Act, Allied Corporation falsely certified that it had complied with HUD’s underwriting standards and that loans it submitted were eligible for insurance by FHA when…

    Due Diligence- 41 readers -
  • BB&T Pays $83 Million Settles Mortgage False Claims Act Beef

    … that were insured by the Federal Housing Administration (FHA). The government allows mortgage companies and banks to issue these insured loans but only if the lenders agree to strict quality control guidelines. According to the Justice Department, between January 2006 and September 2014, BB&T certified loans as eligible for government insurance…

    Due Diligence- 17 readers -
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