Review of Information System Controls Over the Government National Mortgage Association
We have completed a review of the internal controls over the integrity, confidentiality, and availability of the Government National Mortgage Association (Ginnie Mae) data. We focused our review primarily on performing an in-depth business process analysis of Ginnie Mae’s two Master Subservicer supporting contractors. This review was conducted as part of the Office of Inspector General’s audit of HUD’s financial statements…
November 29, 2015
Memorandum
#2016-DP-0801
The Housing Authority of the City of Pearsall, TX, Improperly Procured and Paid Its Interim Executive Director
In accordance with the Office of Inspector General’s (OIG) goal to ensure the integrity and soundness of the U.S. Department of Housing and Urban Development’s (HUD) Public and Indian Housing programs and to follow up on weaknesses identified in another review, we reviewed the Housing Authority of the City of Pearsall, TX, to determine whether it followed Federal procurement and the State of Texas’ requirements when contracting for…
October 02, 2015
Memorandum
#2016-FW-1801
Final Civil Action: Owner of HUD-insured Multifamily Property Settled Allegations of Authorizing and Paying Out Project Funds for Unallowable Expenses
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) performed a review of The Retreat at Church Ranch bank records based on our audit conducted of the project. Our review disclosed that the owner allegedly made payments for personal expenses from the project’s bank account. We requested that HUD pursue proceedings against the owner.
On March 31, 2015, HUD filed a complaint seeking…
October 01, 2015
Memorandum
#2015-DE-1802
The City of Richmond, CA, Did Not Adequately Support Its Use of HUD-Funded Expenses for Its Filbert Phase 1 and Filbert Phase 2 Activities
We reviewed the City of Richmond’s Filbert Phase 1 and Filbert Phase 2 activities in response to the U.S. Department of Housing and Urban Development’s (HUD) San Francisco Office of Community Planning and Development’s and HUD’s Office of Program Enforcement’s concerns over the City’s administration of its HOME Investment Partnerships Program, Community Development Block Grant (CDBG), and CDBG Recovery (CDBG-R) funding of…
September 30, 2015
Memorandum
#2015-LA-1803
Final Civil Action: GTL Investments, Inc., Doing Business as John Adams Mortgage Company Settled Allegations of Failing To Comply With HUD’s FHA Loan Requirements
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG), in coordination with the U.S. Attorney’s Office for the Eastern District of Michigan, conducted a review of GTL Investments, Inc., doing business as John Adams Mortgage Company regarding its originations, underwriting, quality control, and endorsement of Federal Housing Administration (FHA) loans.
The U.S. Government contended that it had…
September 30, 2015
Memorandum
#2015-CH-1801
The Housing Authority of the City of Pittsburgh, PA, Did Not Always Make Payments for Outside Legal Services in Compliance With Applicable Requirements
We conducted a review of the Housing Authority of the City of Pittsburgh’s payments for outside legal services in conjunction with an ongoing internal audit of the U.S. Department of Housing and Urban Development’s (HUD) oversight of public housing agencies’ expenditures for outside legal services. Our review objective was to determine whether the Authority made payments for outside legal services in compliance with applicable…
September 30, 2015
Memorandum
#2015-PH-1808
Iron Mountain Settled Allegations of Making False Disclosures and False Statements Regarding Discounts and Prices Relevant to Contracts It Had With HUD
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) assisted the U.S. Attorney’s Office for the Eastern District of California in the civil investigation of Iron Mountain, Incorporated, and Iron Mountain Information Management, LLC (Iron Mountain). Iron Mountain is headquartered in Boston, MA. The investigation began due to a qui tam[1] filing in the U.S. District Court for the…
September 29, 2015
Memorandum
#2015-CF-1809
First Tennessee, N.A. Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, Northern District of Georgia, in conducting a review of First Tennessee has its principal place of business in Memphis, TN and is a wholly owned subsidiary of First Horizon Financial Corporation. First Tennessee became an FHA-approved direct…
September 29, 2015
Memorandum
#2015-AT-1801
Mason-McDuffie Mortgage Corporation Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted an investigation of Mason-McDuffie Mortgage Corporation to determine whether it violated HUD requirements when underwriting loans insured by the Federal Housing Administration (FHA). Mason-McDuffie was approved on September 1, 2005, as an FHA mortgage lender, and its principal place of business is located in San Ramon, CA.…
September 28, 2015
Memorandum
#2015-CF-1807
Reverse Mortgage Solutions, Inc., Settled Alleged Violations of Federal Housing Administration Loan Requirements Related to Home Equity Conversion Mortgages
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted in an investigation into alleged violations by Reverse Mortgage Solutions, Inc., of Federal Housing Administration (FHA) regulations related to its Home Equity Conversion Mortgage (HECM) program. The investigation began due to a qui tam filed under the False Claims Act, 31 U.S.C. (United States Code) 3729, in the U.S. District…
September 28, 2015
Memorandum
#2015-CF-1808
Veterans First Did Not Administer or Spend Its Supportive Housing Program Grants in Accordance With HUD Requirements
Due to concerns identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development (CPD), we completed a limited scope, spinoff audit of Veterans First and reviewed additional grants not covered in our original audit (2015-LA-1002, issued April16, 2015). CPD was concerned that HUD funds for two additional grants not reviewed in the first audit were used to cover shortfalls in…
September 25, 2015
Memorandum
#2015-LA-1802
Very Small and Small Housing Agencies Reviewed Had Common Violations of Requirements
In accordance with our regional audit plan, we performed a number of reviews of very small and small housing agencies located in the U.S. Department of Housing and Urban Development’s (HUD) Region 6 jurisdiction. We worked with HUD’s Office of Public and Indian Housing (PIH) and Departmental Enforcement Center and the Office of the Inspector General’s (OIG) Office of Investigation to identify housing agencies with areas of…
September 16, 2015
Memorandum
#2015-FW-0802
Final Civil Action Borrower Settled Alleged Violations of Home Equity Conversion Mortgage Program
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program. Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at the same time.…
September 16, 2015
Memorandum
#2015-PH-1807
The Cambridge Housing Authority Appropriately Handled Exception Payments
We conducted a limited review of the Cambridge Housing Authority’s Moving to Work Housing Choice Voucher Program’s use of exception payment standards. This program allows public housing authorities to use exception payment standards to set rental payments in excess of the payment standard established for an authority’s rents . The review was initiated as a result of a concern raised by a member of Congress about whether…
September 16, 2015
Memorandum
#2015-BO-1801
The Duson Housing Authority, Duson, LA, Failed To Administer Its Public Housing Program in Accordance With HUD Requirements
The Duson Housing Authority failed to administer its public housing programs in accordance with HUD regulations and other requirements. Specifically, it did not maintain (1) its units and property grounds or perform annual unit inspections, (2) auditable files, (3) adequate documentation to support tenant childcare and medical expense deductions and utility allowances, and (4) its waiting list properly. This condition…
September 11, 2015
Memorandum
#2015-FW-1808
Property Owner Debarred for Violating Federal Housing Administration Insurance Requirements for Multifamily Properties
HUD OIG assisted the U.S. Attorney’s Office, Northern District of Illinois, in the investigation of Lakeview Sheridan, LLC, and Fremont Sheridan Properties. Lakeview Sheridan is a multifamily property located in Chicago, IL, and Fremont Sheridan was the management company for Lakeview Sheridan. Under section 223(f) of the National Housing Act, HUD insured the mortgage on Lakeview Sheridan in May 2006 through its Federal…
September 09, 2015
Memorandum
#2015-CF-1805
Taylor, Bean & Whitaker Mortgage Corporation and Home America Mortgage, Inc., Settled Civil Claims Related to Failing To Comply With Federal Housing Administration Underwriting Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) assisted in an investigation into alleged violations of Federal Housing Administration (FHA) regulations by Taylor, Bean & Whitaker Mortgage Corporation and Home America Mortgage, Inc. The investigation included a qui tam action filed under the False Claims Act in the U.S. District Court for the Northern District of Georgia. …
September 09, 2015
Memorandum
# 2015-CF-1806
Final Civil Action Bank of America, NA Lender Settled Alleged Violations of Home Equity Conversion Mortgage Program
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program. Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at the same time.…
August 26, 2015
Memorandum
#2015-PH-1806
HUD's Office of Public Housing Investments Could Improve Its Oversight of the Chicago Housing Authority's Exception Payment Standards Under Its Moving to Work Housing Choice Voucher Program
We reviewed the U.S. Department of Housing and Urban Development’s (HUD) oversight of the Chicago Housing Authority’s Moving to Work program based on a congressional request from former Congressman Aaron Schock and media attention regarding the Authority’s exception payment standards. Our objective was to determine whether HUD provided adequate oversight of the Authority’s Moving to Work exception payment standards.
HUD’s Office…
August 26, 2015
Memorandum
#2015-CH-0802
Opportunity in Living, Centennial, CO’s Participation in the HUD Single Family Property Disposition Program
The Office of Inspector General (OIG) conducted an audit of Opportunity in Living (OIL), Centennial, CO’s participation in the U.S. Department of Housing and Urban Development’s (HUD) Single Family Property Disposition program. Our audit objective was to determine whether OIL’s purchase of HUD-owned homes during the exclusive listing period violated HUD regulations at 24 CFR (Code of Federal Regulations) Part 291.
We…
August 25, 2015
Memorandum
#2015-DE-1801