This is the same bank that is being investigated by NY AG for redlining of minority homeowners.
The Office of Inspector General of the United States Department of Housing and Urban Development has released a report alleging that EverBank violated the policies of the Federal Housing Administration’s Preforeclosure Sale Program.
According to the report from the HUD-OIG, EverBank improperly determined whether borrowers were eligible to participate in the FHA’s preforeclosure sale program and as a result of those failings, the FHA insurance fund paid approximately $1.57 million in improper claims.
HUD-OIG said that it audited EverBank’s preforeclosure sale program because “it had the highest Florida preforeclosure sale claims of all servicing lenders located in Florida and more than 50% of its Florida FHA claims were from preforeclosure sales with more than $12.9 million paid from 2011 through 2013.”
HUD-OIG said that its objective in the investigation was to determine whether EverBank had gone through the proper steps before a property was placed into the preforeclosure sale program.
“EverBank did not ensure that the mortgagors’ default on the FHA-insured mortgages was due to an adverse and unavoidable financial situation,” the HUD-OIG report stated. “Also, EverBank did not conduct a thorough and independent verification of the mortgagors’ income, claimed expenses and personal resources to properly determine if they had the ability to pay their mortgage payments. Lastly, EverBank did not substantiate that mortgagors’ need to vacate the FHA-insured property was due to the cause of the default.”
Read on.