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...

We audited Towne Mortgage Company, a Federal Housing Administration (FHA) nonsupervised lender, as part of the activities in our fiscal year 2018 annual audit plan.  We selected Towne Mortgage based on our analysis of risk factors for single-family servicing lenders in Region 5’s jurisdiction.[1]  Our audit objective was to determine whether Towne Mortgage properly implemented its Loss Mitigation program for FHA-insured loans in...

We audited the Grand Rapids Housing Commission’s Rental Assistance Demonstration program (RAD) based on the activities included in our 2017 annual audit plan and our analysis of the housing agencies participating in RAD in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin).  Our audit objective was to determine whether the Commission correctly calculated housing assistance payments for the units...

We audited BLM Companies LLC, a contracted field service manager in HUD’s real estate-owned Management and Marketing III program, as part of the activities included in our 2017 annual audit plan and because it was the sole contractor performing property preservation and protection services for U.S. Department of Housing and Urban Development (HUD)-acquired properties located in Ohio.  Our audit objective was to determine whether BLM...

We audited Travelers Aid Society of Metropolitan Detroit’s Continuum of Care program.  The audit was part of the activities in our fiscal year 2017 annual audit plan.  We selected Travelers Aid’s program based on a request from the Director of the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Community Planning and Development and the results of HUD’s monitoring review of one of Travelers Aid’s fiscal year...

We conducted an audit of BLM Companies LLC’s controls and performance under its Management and Marketing III program field service manager contract with the U.S. Department of Housing and Urban Development (HUD) for area 1D.  Area 1D included HUD real estate-owned and custodial properties in New Mexico, North Texas, Utah, and Colorado.  During the audit period, BLM held 7 of 18 HUD field service manager contracts throughout the Nation...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, Eastern District of Michigan, in the civil investigation of United Shore Financial Services, LLC.  United Shore is a Federal Housing Administration (FHA)-approved mortgage lender, with its principal place of business located in Troy, MI. United Shore became...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office for the District of New Jersey in a civil investigation of Security National Mortgage Company.  Security National is a Federal Housing Administration (FHA)-approved mortgage lender with its principal place of business located in Salt Lake City, UT. On...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Village North Apartments in Salt Lake City, Utah based on concerns that surfaced during another assignment when it appeared as though Village North might have moved tenants in and out of units and collected housing assistance payments for them without changing the social security numbers or birthdates for the new tenants.  The objective of our...

We audited the Port Huron Housing Commission’s public housing program as part of the activities in our fiscal year 2016 annual audit plan.  We selected the Commission based on our analysis of the risk factors relating to public housing agencies in Region 5’s 1 jurisdiction.  Our objective was to determine whether the Commission administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, District of Colorado, in the civil investigation of Primary Residential Mortgage, Inc.  Primary has its principal place of business in Salt Lake City, UT.  Primary became an FHA-approved direct endorsement lender on October 15, 1998.  The direct...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the University Village, LLC in Orem Utah based on previous violations identified by the U.S. Department of Housing and Urban Development (HUD) that found ineligible withdrawals and substandard physical conditions at the property.  The objective of our audit was to determine whether University Village complied with its HUD multifamily Federal...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG) investigated alleged violations of Federal Housing Administration (FHA) regulations by RANlife, Inc.  We reviewed the single-family FHA loan files processed by RANlife to determine whether it complied with HUD’s rules and regulations in originating, underwriting, and endorsing the loans for FHA insurance. On November, 23, 2015, RANlife entered...

Based on a request from the Assistant U.S. Attorney’s Office in Salt Lake City, UT, we provided information about single-family lenders with high default rates. We then reviewed the available case binders for 38 loans for which the Federal Housing Administration (FHA) had paid claims that were underwritten by City First Mortgage Services, LLC. We completed the review and referred alleged violations to the U.S. Department of Housing and Urban...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Housing Authority of the County of Salt Lake Public Housing Capital Fund grants for fiscal years 2011-2014.  We initiated this audit due to the amount of funding the Authority received during our review period.  The Authority is the highest funded public housing agency in the State of Utah.  The objective of our audit was to...

We audited the Lansing Housing Commission’s Section 8 Housing Choice Voucher program based on our analysis of risk factors related to the public housing agencies in Region 5’s  jurisdiction and the activities included in our 2015 annual audit plan.  Our audit objectives were to determine whether the Commission (1) appropriately calculated housing assistance payments, (2) maintained eligibility documentation required to support the...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG), in coordination with the U.S. Attorney’s Office for the Eastern District of Michigan, conducted a review of GTL Investments, Inc., doing business as John Adams Mortgage Company regarding its originations, underwriting, quality control, and endorsement of Federal Housing Administration (FHA) loans. The U.S. Government contended that it had certain...

We audited Member First Mortgage, Limited Liability Company, a Federal Housing Administration (FHA) nonsupervised servicer as part of the activities in our fiscal year 2015 annual audit plan.  We selected Member First based upon our analysis of risk factors for single-family servicing lenders in Region 5’s jurisdiction.   Our audit objectives were to determine whether (1) Member First complied with the U.S. Department of Housing...

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...

We audited the Detroit Housing Commission’s Section 8 Moderate Rehabilitation Program as part of the activities in our fiscal year 2015 annual audit plan.  We selected the Commission based upon a citizen’s complaint alleging mismanagement in the administration of the Commission’s former program projects, Colony Arms and Fisher Arms Apartments.  Our audit objectives were to determine whether the Commission appropriately (1) maintained...