The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the Utah Housing Corporation in response to a hotline complaint. The complaint contained allegations that the Corporation commingled funds from the FHA first mortgages and the downpayment assistance second mortgages and serviced the second mortgages before the FHA first mortgages by using the first mortgage payments to pay the second mortgage. The objective of our review was to determine whether the allegation that Utah Housing Corporation commingled funds and serviced second mortgages before the first FHA mortgages could be substantiated. We did not find evidence to substantiate the allegations. This report contains no formal recommendations, and no further action is necessary.
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