The U.S. Department of Housing and Urban Development’s Office of Inspector General audited the Youngstown Metropolitan Housing Authority’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund Stimulus formula and competitive grants. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the Authority for audit based on the U.S. Department of Housing and Urban Development’s monitoring...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Cuyahoga Metropolitan Housing Authority’s (Authority) Section 8 Housing Choice Voucher program. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the Authority based upon our analysis of risk factors relating to the housing agencies in Region V’s jurisdiction. Our objective was to determine whether the...

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...

The U.S. Department of Housing and Urban Development (HUD) audited PNC Mortgage (PNC), a Federal Housing Administration (FHA)-approved nonsupervised lender and servicer. We selected PNC for audit based on a citizen’s complaint regarding National City Mortgage Corporation (National City). PNC acquired National City in December 2008. Therefore, the report will be addressed to the current entity. Our objective was to determine whether PNC...

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...

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...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the City of Cleveland’s (City) HOME Investment Partnerships Program (Program). The City was selected based upon our analysis of risk factors related to Program grantees in Region V’s jurisdiction, recent media coverage regarding the City’s Program, and a request from the U.S. Department of Housing and Urban Development’s (HUD) Columbus Office of...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General performed an audit of Consumer Credit Counseling Services of the Midwest (Consumer Credit), an affiliate of the National Foundation for Credit Counseling, Inc. (National Foundation). We selected Consumer Credit based on a citizen’s complaint received by our office. Our objective was to determine whether Consumer Credit complied with HUD’s requirements for...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Lake Metropolitan Housing Authority’s (Authority) Section 8 Housing Choice Voucher program (program). The Authority was selected for audit based upon a congressional request from the Honorable Steven C. LaTourette. Our objective was to determine whether the Authority administered its program in accordance with HUD’s requirements and its program...

In response to a request from Congresswoman Mary Jo Kilroy, the U.S. Department of Housing and Urban Development's Office of Inspector General conducted a review of the allegations that Columbus Properties Limited Partnership (Columbus Properties) did not renovate six apartment complexes in Ohio for which it obtained HUD-insured mortgages. Congresswoman Kilroy asked for a review based on local newspaper articles that alleged waste and abuse...

We completed a review of the Retreat at Santa Rita Springs (community), a Federal Housing Administration (FHA)-insured multifamily project under Section 231 of the National Housing Act. Our audit was in response to a request for audit from Representative Gabrielle Giffords of the 8th District of Arizona. The owner defaulted on the $29.9 million U.S. Department of Housing and Urban Development (HUD)-insured mortgage in November 2009, the month...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited National Home Management Solutions (National Home), HUD’s management and marketing contractor for HUD real estate-owned properties in Ohio. We selected National Home based on a citizen’s complaint received by our office. Our objective was to determine whether National Home complied with HUD’s requirements regarding the sale of HUD single-family real...

We audited the Homelessness Prevention and Rapid Re-Housing Program at the State of Arizona Housing Department (Department) because it was the largest single Homelessness Prevention and Rapid Re-Housing Program grant awarded within Arizona under the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objective was to determine whether the Department administered the grant in compliance with Recovery Act and other applicable...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited The Other Place, Inc.’s (The Other Place) use of the American Recovery and Reinvestment Act of 2009’s (Act) Homelessness Prevention and Rapid Re-Housing Program (program) funds. The Other Place was selected for audit based upon a citizen’s complaint to the Recovery Accountability and Transparency Board that was forwarded to our office. The...

We audited Federal Housing Administration (FHA)-insured loan processes at two DHI Mortgage Company, LTD (DHI Mortgage), branches in Scottsdale, AZ, to determine whether DHI Mortgage originated, approved, and closed FHA-insured single-family loans in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We recently conducted an audit of DHI Mortgage’s Tucson and Scottsdale branches and identified significant...

In response to an April 3, 2009, hotline request from the Kaibab Band of Paiute Indians, Pipe Spring, AZ (Kaibab), the U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General reviewed HUD’s evaluation of Kaibab’s application for an Indian Community Development Block Grant (Indian Block Grant) under HUD’s 2008 notice of funding availability. The review objective was to evaluate the merits of the complainant’s...

In accordance with our goal to review funds provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act), the U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General conducted a capacity review of the City of East Cleveland’s (City) operations. We also selected the City based upon the results of our audit of the City’s Community Development Block Grant (Block Grant) and HOME Investment...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General performed an audit of Leader Financial Services (Leader), a Government National Mortgage Association (Ginnie Mae) issuer servicing Federal Housing Administration (FHA)-insured loans. We initiated the audit based on the 62 percent delinquency rate of Leader’s mortgage-servicing package purchased from Fidelity Home Mortgage Corporation (Fidelity). Our...

We conducted an inspection of post-Mark-to-Market (M2M) restructuring of mortgage debt of Lakeshore Village Apartments (Lakeshore Village), Cleveland, OH, to determine the validity of an informal complaint from HUD’s Multifamily Office of Asset Management (OAM).  OAM staff was concerned that, in approving the assignment and assumption of the restructured debt instruments, HUD’s Office of Affordable Housing Preservation (OAHP) was not...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Lake Metropolitan Housing Authority’s (Authority) Section 8 Housing Choice Voucher program (program). The Authority was selected for audit based upon a congressional request from the Honorable Steven C. LaTourette. Our objective was to determine whether the Authority administered its program in accordance with HUD’s requirements and its program...