Housing Programs: Agency Actions to Discourage Single Family Mortgage Insurance Fraud

摘要

In assisting individuals in financing home purchases, HUD operates single family mortgage insurance programs to protect lenders against borrowers who default and subsequently lose their homes through foreclosure. As of September 30, 1985, HUD had insurance-in-force on over 5 million loans totaling about $135 billion. News media reports of an alleged fraudulent housing scheme involving several hundred HUD-insured home loans in Camden, New Jersey, raised questions about the program's integrity and its vulnerability to fraud and abuse--a condition that could cost the government and ultimately the taxpayers millions of dollars. The series of news media articles, published in January 1984, alleged that extensive fraud, abuse, and profiteering had plagued HUD's program in Camden.