HUD is investigating its Home Equity Conversion Mortgage (HECM) program, specifically looking at how Life Expectancy Set Aside calculations impact borrower compliance with program goals. After starting in 2015, this initiative aims to safeguard vulnerable, elderly homeowners from future tax and insurance liabilities. Recent legal actions show the office's commitment to addressing fraud, highlighted by the sentencing of Mark Steven Diamond for exploiting over 100 seniors in a reverse mortgage scheme. This marks ongoing efforts under acting HUD inspector general Stephen M. Begg, following a long hiatus since 2020.
The HUD OIG was instrumental in yielding a 17-year prison sentence for Mark Steven Diamond, who defrauded elderly homeowners through a reverse mortgage scheme.
In 2015, HUD required some HECM borrowers to maintain a Life Expectancy Set Aside for property taxes and insurance to protect both the borrower and the program.
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