We audited Prysma Lending Group, LLC, a nonsupervised lender, located in Danbury, CT, in support of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) goal of improving the integrity of the single-family insurance program. We selected Prysma for audit because its 3.28 percent default rate for Federal Housing Administration (FHA)-insured single-family loans with beginning amortization dates between...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Flint Housing Commission’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund competitive grants. We selected the Commission based upon our analysis of risk factors relating to the housing agencies in Region 5’s jurisdiction. Our objective was to determine whether the Commission administered its grants in accordance with...

The U.S. Department of Housing and Urban Development (HUD), Office of the Inspector General (OIG) audited the Saginaw Housing Commission’s Section 8 Housing Choice Voucher program. The audit was part of the activities in our fiscal year 2012 annual audit plan. We selected the Commission based upon our previous audits of its use of Federal funds and a request from HUD management to perform a comprehensive review of its programs. Our objective...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Attorney’s Office, Southern District of New York, in conducting a review of Flagstar Bank, FSB. The objective of the review was to determine whether Flagstar conducted its operations in the underwriting of Federal Housing Administration (FHA) loans in accordance with HUD-FHA regulations. Flagstar Bank, FSB, is a supervised direct...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the State of Michigan’s Neighborhood Stabilization Program administered by the Michigan State Housing Development Authority. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the State based upon our designation of the Program as high risk and citizens’ complaints to our office. Our objective was to determine...

We audited the Housing Authority ofthe City of Stamford, CT's administration of its Federal housing programs based on an anonymous complaint. Federal programs included Operating Fund, Section 8 programs (including the Housing Choice Voucher program, Section 8 Moderate Rehabilitation program, and Section 8 Moderate Rehabilitation Single Room Occupancy program), and Capital Fund programs. The Authority was also awarded an American Recovery...

We audited the Saginaw Housing Commission’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund Stimulus formula grant. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the Commission based upon our previous audits of the Commission’s use of Federal funds and a request to perform a comprehensive review of its programs from the U.S. Department of Housing and Urban Development’s (...

We performed a corrective action verification review of the audit recommendations made on the procurement practices of the Housing Authority of the City of Danbury for finding 5 of Audit Report Number 2004-BO-1004, issued December 5, 2003. This review was based on a complaint. The purpose of the review was to determine whether the selected audit recommendations were implemented and the deficiencies cited in the report were corrected. The...

We audited the Housing Authority of the City of Hartford’s (the Authority’s) administration of its American Recovery and Reinvestment Act grant that funded a construction management contract based on a hotline complaint. Our objective was to determine if the Authority solicited, evaluated, and administered the $2.5 million grant funding and associated contract (the contract) properly and in accordance with federal requirements. We also visited...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Pontiac Housing Commission’s Public Housing Capital Fund Stimulus (formula) Recovery Act Funded grant. The audit was part of the activities in our fiscal year 2010 annual audit plan. We selected the Commission for review as part of the Office of Inspector’s General’s commitment to ensure the proper use of Recovery Act funds. Our objective was to...

The U.S. Department of Housing and Urban Development’s Office of Inspector General audited the Saginaw Housing Commission’s Public Housing program. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the Commission based upon our previous audit report on the Commission’s use of public housing funds, audit report number 2006-CH-1018, issued September 28, 2006, and an indication that the Commission was...

We audited the Housing Authority of the City of New Haven’s (Authority) Public Housing Capital Fund (Capital Fund) and American Reinvestment and Recovery Act of 2009 Capital Fund (Recovery Act Capital Fund) projects for compliance with environmental and labor law requirements. We initiated this assignment because a previous Office of Inspector General (OIG) audit of the Authority’s Recovery Act Capital Fund activities identified a significant...

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the State of Michigan’s (State) Neighborhood Stabilization Program (Program) administered by the Michigan State Housing Development Authority (Authority). The audit was part of the activities in our fiscal year 2010 annual audit plan. We selected the State based upon our designation of the Program as high risk and a citizen’s complaint to our...

We selected the Housing Authority of the City of New Haven (Authority), a Moving to Work agency, because it obligated a majority of its $6 million in Public Housing Capital Fund Stimulus (formula) Recovery Act Funded grant (grant) received under the American Recovery and Reinvestment Act of 2009 (Recovery Act) just before the required obligation deadline. Our objectives were to determine whether the Authority (I) obligated its Recovery Act...

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 2010 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 objectives were to determine...

We audited the Manchester Housing Authority (Authority) in Manchester, CT, because it obligated the majority of its $520,654 Public Housing Capital Fund Stimulus (Formula) Recovery Act Funded grant awarded under the American Recovery and Reinvestment Act of 2009 (Recovery Act) just before the required obligation deadline. Our objectives were to determine whether the Authority (1) obligated its grant funds in a timely manner for eligible...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) audited Michaelson, Connor, and Boul, Incorporated (MCB), a management and marketing contractor for HUD real estate-owned properties in Michigan. We selected MCB based on the results of our audit of Custom Closing, a HUD-designated closing agent for the State of Michigan (see OIG audit report #2009-CH-1021, issued September 2009). Our objective was...

We conducted a review of Federal Housing Administration (FHA) loans underwritten by Webster Bank (Webster), an FHA direct endorsement lender. This review was conducted as part of our “Operation Watchdog” initiative to review the underwriting of 15 direct endorsement lenders at the suggestion of the FHA Commissioner. The Commissioner expressed concern regarding the increasing claim rates against the FHA insurance fund for failed loans. The...

The U.S. Department of Housing and Urban Development's Office of Inspector General (OIG) reviewed 15 Federal Housing Administration (FHA) loans that D & R Mortgage Corporation (D & R) underwrote as an FHA direct endorsement lender. Our review objective was to determine whether D & R underwrote the 15 loans in accordance with FHA requirements. This review is part of Operation Watchdog, an OIG initiative to review the underwriting...

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...