Residence -requirements Top Hud Oig’s list of open reverse mortgage problems

According to the online database, the only biter is related to a settlement between HUD and Metlife Home Loans achieved in 2018, as a result of allegations that the lender and the son of an inverted mortgage loan do not comply with the requirements of the HECM loan of the Federal Housing Administration (Fha).

Based on an assessment of the loan that was carried out in 2017, “Hud Metlife and the son of the borrower informed of their potential liability under the program fraud civil remedies act of 1986 […] To cause a false claim that must be submitted with regard to the suitability of a FHA HECM loan, ” the entry said. “Metlife endorsed the loan and failed to ensure that the signatories of the loan had the legal authority to implement it.”

In particular, De Oig noticed: “The power of attorney, as a result of which the Son of the borrower carried out the loan, required the signature of his sister and his.” Metlife itself would pay HUD $ 4,000 in the settlement, and the son of the borrower paid $ 1500 to things that the OIG considers closed.

But what remains is a matter that comes from the enforcement of a compensation agreement, “to prevent an estimated loss of $ 95,769 for HUD,” says the OIG site. “This represents an amount due from Hud van Metlife for making love and keeping HUD harmless for all losses that comes in or led in connection” with the loan.

In January 2012, Metlife left the forward mortgage activities But at that time continued to operate as a reverse mortgage provider. But only four months later the lender left his reverse mortgage activities and sold his portfolio to National Mortgage. Metlife was the first to create an official financial assessment for reverse mortgage lenders in his retail and wholesaler, who has implemented it to prevent tax and insurance with borrowers. But the company later suspended the assessment for an indefinite period.

Three of the four open HECM-related issues According to HUD Oig, however, are related to the main permit requirements of the HECM program, which state that a HECM borrower must remain in the house as their primary home.

The office made the First such a recommendation made another in 2014, and shortly thereafter Less than a year laterWith the “Strategic goal of improving the integrity of HUD’s single-family insurance programs and due to residence problems that have been identified in earlier audits of the HECM program.” An audit that was carried out at the time discovered that no fewer than 136 of the 159 rated borrowers “did not live in the properties related to their loans because they received rental assistance in the context of the voucher program for a different address at the same time.”

De Oig ordered HUD “to implement checks to prevent or limit borrowers that violate the residence requirements of the HECM program by taking part in the voucher program” at the same time, also by working with Hud’s Office of Public Housing to the recipient of the recipient of receiver data.

A similar assessment of the following year showed that under 68 loans that were statistically selected for assessment, “67 loans did not live in the properties related to their loans because they received rental assistance from Hud’s Multifamily programs at a different address at the same time.”

There were no checks for this, De Oig said, which could lead to losses in the FHA insurance fund. But a subsequent assessment of the issue that was carried out in December 2021 showed that “HUD implemented the agreed corrective measures for one recommendation, did not implement the current corrective measures for one recommendation and did not implement corrective measures for two recommendations.”

As a result, HUD Open 2021’s recommendation “that the office of single -family homes coordinates its efforts with the Office of Public and Indian Housing and the Office of Multifamily Housing Programs to further ensure that there are suitable checks to prevent Oig -input said.

With regard to one of the open recommendations from previous years, a memorandum stated that “HUD explained that it has not implemented any of the corrective measures due to the turnover of high staff.”