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 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...

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...

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...

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...

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...

We audited Prudential Huntoon Paige Associates, LTD’s underwriting of a $22.8 million mortgage loan to refinance Lafayette Towers Apartments, a 584-unit highrise multifamily project in Detroit, MI.  We initiated the review based on the early default, assignment, and significant amount of the project.  Our objective was to determine whether Prudential underwrote and processed the loan for Lafayette Towers according to the U.S....

We audited Lake Village of Fairlane Apartments as part of the activities in our fiscal year 2014 annual audit plan.  We selected the project based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Multifamily Housing Programs.  Our objective was to determine whether the project’s owner and former management agents operated the project in accordance with HUD’s requirements and the...

We audited the Lake Village of Auburn Hills multifamily project as part of the activities in our fiscal year 2014 annual audit plan.  We selected the project based on a request from the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Multifamily Housing.  Our objective was to determine whether the project’s owner and former management agents operated the project in accordance with the regulatory agreement...

We audited the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Public Housing as part of a nationwide audit of HUD’s oversight of environmental reviews.  We selected the Detroit Office based on our risk assessment.  Our audit objectives were to determine whether the Detroit Office’s oversight of public housing environmental reviews within its jurisdiction ensured that (1) the responsible entities performed...

We audited the Pontiac Housing Commission’s Section 8 Housing Choice Voucher program based on our analysis of risk factors relating to the housing agencies in Region 5’s  jurisdiction.  Our objective was to determine whether the Commission complied with Federal, State, or its own requirements regarding its Family Self-Sufficiency program and conflicts of interest. The Commission did not always administer its Family Self-Sufficiency...

We audited the Ferndale Housing Commission’s Section 8 Housing Choice Voucher program as part of the activities in our fiscal year 2014 annual audit plan.  We selected the Commission based upon an analysis of risk factors related to public housing agencies in Region 5’s jurisdiction.   Our objectives were to determine whether the Commission appropriately (1) calculated housing assistance payments, (2) maintained required...

We audited the Jackson Housing Commission’s Section 8 program as part of the activities in our fiscal year 2014 annual audit plan.  We selected the Commission based on our analysis of the risk factors relating to public housing agencies in Region 5’s jurisdiction.  Our objective was to determine whether the Commission administered its program in accordance with HUD’s and its own program requirements. The Commission generally...

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

We audited the City of Detroit’s Neighborhood Stabilization Program-funded demolition activities under the Housing and Economic Recovery Act of 2008.  We selected the City based on a request from the Office of Inspector General’s Office of Investigation to work jointly with it on the assignment.  Our objectives were to determine whether the City complied with Federal regulations in its (1) maintenance of accounting records for...

We audited the City of Flint’s HOME Investment Partnerships Program.  We selected the City based upon our analysis of risk factors related to Program grantees in Region 5’s1  jurisdiction.  Our objectives were to determine whether the City complied with Federal requirements and its own requirements in the administration of its Program.  This is the third of three audit reports on the City’s Program. The City did not ensure...

We audited the Michigan State Housing Development Authority’s multifamily project-based Section 8 program for new-regulation projects as part of the activities in our fiscal year 2013 annual audit plan.  We selected the Authority based on a referral from U.S. Department of Housing and Urban Development (HUD) management.  Our objective was to determine whether the Authority administered its program in accordance with HUD’s requirements...