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Home » OIG Recommends Action Against Errant Lender
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OIG Recommends Action Against Errant Lender

August 26, 2011
The Department of Housing and Urban Development’s Office of the Inspector General recommended that an approved FHA lender be ordered to indemnify HUD against any future losses on a number of loans with material underwriting deficiencies. An audit of Ameritrust Mortgage Bankers, based in Lake Success, NY, found that 11 of the 20 FHA-insured mortgages that the lender had originated failed to meet FHA underwriting guidelines and that a quality control plan did not meet agency requirements. Inadequate verification and documentation of borrowers’ income, assets, liabilities and credit histories resulted in actual losses of $183,327 on one loan and potential losses of more than $2.7 million on 10 loans, for total losses of more than $2.9 million, the audit found. In addition, Ameritrust officials allegedly charged ...
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