The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General (OIG) reviewed 20 Federal Housing Administration (FHA) loans that Mac-Clair Mortgage Corporation (Mac-Clair) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Mac-Clair underwrote the 20 loans in accordance with FHA requirements. This review is part of “Operation Watchdog”, an OIG initiative to review the...

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General (OIG) reviewed 20 Federal Housing Administration (FHA) loans that Birmingham Bancorp Mortgage Corporation (Birmingham) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether Birmingham underwrote the 20 loans in accordance with FHA requirements. This review is part of “Operation Watchdog,” an OIG initiative to...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited Access National Mortgage Corporation (Access National) to determine whether it complied with HUD regulations, procedures, and instructions in originating, underwriting, and submitting for endorsement the FHA-insured loans selected for review. Access National generally complied with HUD regulations, procedures, and instructions in the origination and...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Michigan State Housing Development Authority’s (Authority) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2010 annual audit plan. We selected the Authority’s program based upon our analysis of the housing authorities’ programs in Region V’s jurisdiction and as part of our internal audit...

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 Office of Inspector General conducted a capacity review of the Benton Harbor Housing Commission’s (Commission) operations. We selected the Commission based upon the results of our audit of the Commission’s Public Housing Capital Fund (Capital Fund) program (see...

The U.S. Department of Housing and Urban Development's Office of Inspector General reviewed the City of Saginaw’s (City) Community Development Block Grant (Block Grant) program under the American Recovery and Reinvestment Act of 2009 (Act). The review was part of the activities in our fiscal year 2010 annual audit plan. We selected the City based upon the results of our prior audit of the City’s Block Grant-funded demolition activities. Our...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General reviewed Wayne County’s (County) Neighborhood Stabilization Program (Program). The review was part of the activities in our fiscal year 2009 annual audit plan. We selected the County based upon a request from HUD’s Detroit Office of Community Planning and Development. Our objective was to determine whether the County had the capacity to effectively and...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Kier Property Management and Real Estate, LLC (Kier) to determine whether Kier properly accounted for property and management agent costs and properly accomplished its occupancy functions. Kier recorded more than $2 million in notes payable in the properties’ books for notes that did not properly restrict repayment of the principal to surplus cash...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Grand Rapids Housing Commission’s (Commission) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the Commission’s program based upon our internal audit survey of HUD’s oversight of the program and our analysis of risk factors relating to the housing...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the City of Saginaw’s (City) Community Development Block Grant (Block Grant) program-funded demolition activities. The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the City based upon a request from HUD’s Detroit Office of Community Planning and Development. Our audit objective was to determine whether the...

The City of Aurora, Colorado will receive more than $1.6 million in Recovery Act funding to carry out its Homelessness Prevention and Rapid Re-Housing Program and perform additional activities under its Community Development Block Grant (CDBG) program. HUD's Office of Inspector General (OIG) evaluated the City's capacity to administer its Recovery Act funds. The OIG did not find evidence to indicate that the City lacked the capacity...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the Michigan State Housing Development Authority’s (Authority) Section 8 Project-Based Voucher program (program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the Authority’s program based upon our internal audit survey of HUD’s oversight of the program and our analysis of risk factors relating to the...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited the City of Flint’s (City) HOME Investment Partnerships Program (Program). The audit was part of the activities in our fiscal year 2009 annual audit plan. We selected the City based upon our analysis of risk factors relating to Program grantees in Region V’s jurisdiction and a citizen complaint to our office. Our audit objectives were to determine...

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General performed an audit of Custom Closing Services, Incorporated (Custom), a contractor closing sales of HUD real estate-owned properties in the state of Michigan. The audit was conducted based on a complaint to our hotline alleging that Custom caused significant delays in the closing of HUD homes in Michigan. Our audit objective was to determine whether...

Adams County, Colorado will receive more than $1.3 million in Recovery Act funding to carry out its Homelessness Prevention and Rapid Re-Housing Program and to provide additional funding to its Community Development Block Grant (CDBG) program. HUD's Office of Inspector General (OIG) evaluated the County's capacity to administer its Recovery Act funds. The OIG found weaknesses that could significantly affect the County’s capacity to...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Adams County, Colorado’s Community Development Block Grant (Block Grant) program to determine whether Adams County’s Community and Economic Opportunity Department (Department) had adequate controls over the administration of its Block Grant funds. The Department did not have adequate controls over its Block Grant funds. Specifically, it did not (1)...

The U. S. Department of Housing and Urban Development Office of Inspector General audited the City of Thornton (City) to determine whether it used its Community Development Block Grant (CDBG) funds for projects that met a national objective. The City did not maintain sufficient records demonstrating that each CDBG activity met a national objective. Of the 10 CDBG projects reviewed, the City sufficiently documented that five of the projects...

The U. S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Housing Authority of the City of Brush, Colorado (Authority) because we received information indicating there were irregularities in the Authority's procurement process. Our audit objective was to determine whether the Authority performed contracting activities in accordance with federal procurement requirements. The Authority did not...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Adams County, Colorado's HOME Investment Partnerships Program (HOME) to determine whether Adams County appropriately spent and accounted for HOME funds and maintained supporting documentation for its matching contributions reported to HUD. Adams County inappropriately spent or could not support more than $2.1 million in HOME funds. Specifically...

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the Lansing Housing Commission's (Commission) nonprofit development activities. The review of public housing authorities' development activities is set forth in our fiscal year 2007 annual audit plan. We selected the Commission because it was identified as having high-risk indicators of nonprofit development activity. Our objective was...