The Benkelman Housing Authority, Benkelman, NE, Did Not Follow HUD Rules and Regulations for Public Housing Programs Related to Procurement and Maintenance, Tenant Certifications, Laundry Machine Income, and Expenditures
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Benkelman Housing Authority based on a request from the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG), Office of Investigation. Additionally, HUD conducted an onsite assessment in May 2016 and identified concerns, including procurement, income verification, travel policy, and significant control...
Septiembre 27, 2018
Report
#2018-KC-1004
DHI Mortgage Company Ltd., Settled Allegations of Making False Certifications Regarding Federal Housing Administration Loans
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), referred alleged violations to HUD’s Office of Program Enforcement for action under the Program Fraud Civil Remedies Act based on two audits of DHI Mortgage Company Ltd. (DHIM) that found it did not follow HUD requirements when it underwrote Federal Housing Administration (FHA)-insured loans with prohibited restrictive addenda to the purchase...
Septiembre 29, 2016
Memorandum
#2016-LA-1802
The Owner of Coconut Grove Apartments Did Not Always Operate Its HUD-Insured Project in Accordance With HUD Rules and Requirements
We audited Coconut Grove Apartments due to concerns expressed by the U.S. Department of Housing and Urban Development’s (HUD) Office of Multifamily Housing Programs regarding the management of the project. The main concern was that the owner may have diverted project funds for nonproject expenses. Our audit objective was to determine whether Coconut Grove’s owner operated its Sections 223(f) and 241(a)-insured multifamily rental...
Septiembre 22, 2015
Report
#2015-LA-1008
The Fairmont Housing Authority Did Not Fully Comply With Procurement Requirements and Spent Funds for Ineligible Expenses
The U.S. Department of Housing and Urban Development (HUD) – Office of Inspector General audited the Fairmont Housing Authority in Fairmont, NE, regarding its procurement and expenditures for its HUD, Office of Public and Indian Housing programs. Our audit objective was to determine whether the Authority followed HUD rules and regulations and its own policies and procedures for procurement and expenditures.
The Authority did not properly...
Septiembre 01, 2015
Report
#2015-KC-1008
The York Housing Authority Did Not Fully Comply With Procurement Requirements and Spent $21,047 for Ineligible and Unsupported Costs
The U.S. Department of Housing and Urban Development (HUD) – Office of Inspector General audited the York Housing Authority in York, NE, regarding its procurement and expenditures for its HUD, Office of Public and Indian Housing programs. Our audit objective was to determine whether the Authority followed HUD rules and regulations and its own policies and procedures for procurement and expenditures.
The Authority did not properly procure...
Agosto 20, 2015
Report
#2015-KC-1006
The Stromsburg Housing Authority Did Not Fully Comply With Procurement Requirements and Spent Funds for Ineligible Expenses
The U.S. Department of Housing and Urban Development (HUD) – Office of Inspector General audited the Stromsburg Housing Authority in Stromsburg, NE, regarding its procurement and expenditures for its HUD, Office of Public and Indian Housing programs. Our audit objective was to determine whether the Authority followed HUD rules and regulations and its own policies and procedures for procurement and expenditures.
The Authority did not...
Agosto 20, 2015
Report
#2015-KC-1007
NOVA Financial & Investment Corporation’s FHA-Insured Loans With Downpayment Assistance Gifts Did Not Always Meet HUD Requirements
We audited NOVA Financial & Investment Corporation based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division detailing a separate lender that originated Federal Housing Administration (FHA)-insured loans that contained ineligible downpayment assistance gifts. The HUD Office of Inspector General’s (OIG) analysis identified NOVA as a lender with the highest origination volume in the...
Julio 09, 2015
Report
#2015-LA-1005
Final Civil Action – Borrower Settled Allegations of Not Complying With the Primary Residence Requirement of the Federal Housing Administration Program
HUD OIG conducted a civil investigation of an alleged loan origination fraud scheme involving a cash-out refinance loan that was insured by the Federal Housing Administration (FHA). FHA provides mortgage insurance on loans made by FHA-approved lenders to creditworthy borrowers. Borrowers must occupy the properties as their primary residence for at least 1 year. Borrowers certify to their intent to occupy the property when...
Marzo 27, 2015
Memorandum
#2015-CF-1804
Southwest Stage Funding, LLC, dba Cascade Financial Services, Took Corrective Action on Loans That Did Not Meet All HUD and FHA Requirements
We reviewed Southwest Stage Funding, LLC, dba Cascade Financial Services, in Gilbert, AZ. We selected Southwest Stage because it originated 1,841 loans totaling more than $244 million during calendar years 2012 and 2013. Further, it had received more loan endorsements on manufactured housing loans than any other lender in Texas since January 1, 2009. Our objective was to determine whether the lender complied with U.S....
Julio 23, 2014
Memorandum
#2014-FW-1803
The White Mountain Apache Housing Authority Did Not Always Comply With Its Indian Housing Block Grant Requirements
We audited the White Mountain Apache Housing Authority’s Indian Housing Block Grant (IHBG). We conducted the audit primarily due to concerns raised by HUD’s Southwest Office of Native American Programs regarding the Authority’s financial management practices. The objective of the audit was to determine whether the Authority used its IHBG funds in accordance with HUD requirements.
The Authority failed to use its IHBG funds in...
Julio 08, 2014
Report
#2014-LA-1004
The Lending Company, Inc., Phoenix, AZ, Did Not Always Comply With FHA Underwriting and Quality Control Program Requirements
We audited The Lending Company, Inc., based on a hotline complaint, previous U.S. Department of Housing and Urban Development (HUD) reviews, and our goal to improve the integrity of the Federal Housing Administration (FHA) single-family insurance programs. Our objectives were to determine whether The Lending Company complied with HUD requirements when it used gift programs, originated and underwrote FHA loans, and implemented its quality...
Agosto 20, 2013
Report
#2013-LA-1008
The City of Cedar Rapids, IA, Did Not Ensure a Competitive Procurement Process and Did Not Properly Execute Its CDBG Disaster Recovery-Funded Contracts
We audited the City of Cedar Rapids, IA Property Acquisition Program. We selected the City for review based on a citizen’s hotline complaint and the amount of disaster funding received by the City. During fiscal years 2008 through 2011, the City’s property acquisition program was awarded more than $125 million in disaster funding. Our audit objective was to determine whether the City (1) expended its CDBG disaster recovery grant funds for...
Octubre 23, 2012
Report
#2013-KC-1001
Allen Mortgage, LLC, Centennial Park, AZ, Did Not Comply With HUD Requirements for Underwriting FHA Loans and Fully Implement Its Quality Control Program in Accordance With HUD’s Requirements
The U.S. Department of Housing and Urban Development, Office of Inspector General audited Allen Mortgage, Limited Liability Company, a Federal Housing Administration (FHA) nonsupervised lender. We selected Allen Mortgage for audit based on its high default and claim rate for the FHA-insured loans sponsored in Region 5. Our objectives were to determine whether (1) Allen Mortgage complied with HUD’s regulations, procedures, and instructions in...
Septiembre 30, 2012
Report
#2012-CH-1015
The City of Phoenix, AZ, Did Not Always Comply With Program Requirements When Administering Its NSP1 and NSP2 Grants
We completed a review of the City of Phoenix’s (City) Neighborhood Stabilization Program (NSP) grants NSP1 and NSP2. We performed the review because it supports the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s strategic plan to contribute to the oversight objectives of the American Recovery and Reinvestment Act of 2009 and the City received a $60 million grant as one of 56 NSP2 grantees. Our objective...
Junio 15, 2012
Report
#2012-LA-1008
Metlife Bank's Scottsdale, AZ, Branch Office Did Not Follow FHA-Insured Loan Underwriting and Quality Control Requirements
We audited the Federal Housing Administration (FHA)-insured loan process at MetLife Bank’s (lender) branch in Scottsdale, AZ, to determine whether the lender underwrote FHA-insured loans and implemented a quality control plan in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We selected the lender because it had an FHA default rate of 7.41 percent for loans underwritten in Arizona between April 1, 2009, and...
Enero 25, 2012
Report
#2012-LA-1004
Housing Our Communities, Mesa, AZ, Did Not Administer Its Neighborhood Stabilization Program in Accordance with HUD Requirements
We audited Housing Our Communities’ (subrecipient) Neighborhood Stabilization Program (NSP1) subgrant from the City of Avondale. The audit was started primarily because the U.S. Department of Housing and Urban Development, Office of Inspector General’s (HUD OIG) audit plan includes objectives to review Housing and Economic Recovery Act grantees and because a previous HUD OIG audit of the City of Mesa found indications that the subrecipient did...
Diciembre 07, 2011
Report
#2012-LA-1001
Chicanos Por La Causa, Inc., Did Not Always Administer its Neighborhood Stabilization Program 2 Grant as Required
We audited Chicanos Por La Causa, Inc.’s (grantee) Neighborhood Stabilization Program 2 (NSP2) grant to determine whether the grantee administered its NSP2 grant in accordance with HUD’s program requirements. We conducted the audit as part of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) fiscal year 2011 annual audit plan and to support HUD OIG’s fiscal year 2011 strategic goal to contribute to...
Julio 22, 2011
Report
#2011-LA-1015
Review of Compliance With the Real Estate Settlement Procedures Act by DHI Mortgage, LTD, and Its Closing Agents
We reviewed Federal Housing Administration (FHA)-insured loan settlement documents from two branches of DHI Mortgage Company, LTD (DHI Mortgage), in Arizona. During a previous audit of loan origination by the same branches (audit report number 2009-LA-1018), there was information indicating that the Real Estate Settlement Procedures Act (Act) might have been violated; however, we were unable to report on the issue at the time. Our review...
Febrero 08, 2011
Memorandum
#2011-LA-1801
The City of Mesa, AZ, Needs To Improve Its Procedures for Administering Its Neighborhood Stabilization Program Grant
We audited the City of Mesa’s (grantee) Neighborhood Stabilization Program (NSP1) grant to determine whether the grantee administered the grant in accordance with HUD’s program requirements. The audit was started primarily because the Office of Inspector General’s (OIG) audit plan includes objectives to review Housing and Economic Recovery Act grantees and because staff from the U.S. Department of Housing and Urban Development’s (HUD) Office of...
Febrero 07, 2011
Report
#2011-LA-1006
The Omaha, Nebraska Housing Authority Did Not Comply With Recovery Act Requirements When Reporting on Recovery Act Capital Funds
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Omaha Nebraska Housing Authority (Authority) to determine whether the Authority (1) obligated Recovery Act grant funds in accordance with Recovery Act requirements and applicable U.S. Department of Housing and Urban Development (HUD) rules, (2) expended Recovery Act grant funds in accordance with Recovery Act requirements and applicable HUD rules...
Septiembre 30, 2010
Report
#2010-KC-1009