The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the Utah Housing Corporation in response to a hotline complaint. The complaint contained allegations that the Corporation commingled funds from the FHA first mortgages and the downpayment assistance second mortgages and serviced the second mortgages before the FHA first mortgages by using the first mortgage payments to pay the second mortgage. The...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Washington State Department of Commerce to determine whether it complied with Lead Hazard Control grant project eligibility, matching contribution, administrative cost, and American Recovery and Reinvestment Act reporting requirements. This audit is part of the national mandate to monitor grant activities funded by the Recovery Act. We selected...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the City of Seattle’s Community Development Block Grant- Recovery (CDBG-R) program to determine whether the City used its CDBG-R funds in accordance with HUD and Recovery Act requirements and subgrantee expenditures were appropriate, eligible, and supported. We selected the City for review because it received $3.26 million in CDBG-R funds, more than...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Washington State Department of Commerce to determine whether it complied with the HOME Investment Partnership Program project eligibility, administrative cost, program income, accessibility, and match fund requirements. We selected the State because it received over $31 million in HOME grants from HUD in fiscal years 2009 through 2011 which...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Vancouver Housing Authority to determine whether it was managing and reporting its three awarded Recovery Act Capital Fund grants in accordance with requirements. We selected the Authority because it was part of our annual audit plan, which includes reviewing funds provided under the American Recovery and Reinvestment Act of 2009. The Authority did not...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Bellingham Whatcom County Housing Authorities to determine whether expenditures for American Recovery and Reinvestment Act of 2009 Capital Fund Grants were appropriate, eligible, and adequately supported and whether related procurements were made in accordance with 24 CFR (Code of Federal Regulations) Part 85 and Recovery Act requirements. We selected...

The U.S. Department of Housing and Urban Development (HUD) – Office of Inspector General (OIG) reviewed 46 Federal Housing Administration (FHA) loans that Pierce Commercial Bank underwrote as an FHA direct endorsement lender. Pierce was a supervised FHA direct endorsement lender located in Tacoma, WA. This case was referred to us by OIG’s Office of Investigation. Our review objective was to determine whether Pierce underwrote 46 loans in...

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited Mountain States Mortgage Center to determine whether it underwrote insured loans in compliance with HUD requirements and whether its quality control plan met HUD requirements. Mountain States underwrote 41 loans that did not comply with FHA requirements. Of the 41 FHA-insured loans reviewed, one of the loans had a significant underwriting...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited King County Housing Authority to determine whether its expenditures for three Recovery Act Capital Fund Competition Grants were appropriate, eligible, and adequately supported and whether related procurements were made in accordance with 24 CFR (Code of Federal Regulations) Part 85 and Recovery Act requirements. We selected the Authority because it...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, reviewed Blue Mountain Hospital (Hospital) based on a request from the Office of Healthcare Programs. The objective of our review was to determine whether the Hospital had adequate written procedures for collecting, dispersing, and accounting for project funds. The Hospital did not have adequate written procedures for collecting, disbursing, and accounting...

The U. S. Department of Housing and Urban Development, Office of Inspector General, audited the Washington State Housing Finance Commission (the Commission) to determine whether the Commission established eligible grant projects, reported tax credit assistance program (TCAP) information into Recovery.gov accurately and completely, and paid eligible TCAP expenditures in accordance with American Recovery and Reinvestment Act of 2009 requirements...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, We reviewed the Housing Authority of the County of Salt Lake’s (Authority) Public Housing Capital Fund Stimulus (formula) Recovery Act Funded grant (grant) based on a risk assessment we completed and the results of a monitoring review performed by the Denver Office of Public Housing. The objective was to determine whether the Authority properly obligated...

The U.S. Department of Housing and Urban Development, Office of the Inspector General, audited the Washington State Department of Commerce (State). Our audit objective was to determine whether the State disbursed Homelessness Prevention and Rapid Re-Housing Program (HPRP) grant in accordance with American Recovery and Reinvestment Act of 2009 requirements. The State paid for HPRP services for ineligible participants and participants whose...

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General conducted a capacity review of Seattle Housing Authority’s (Authority) capital fund to determine whether there was evidence that the Authority lacked the capacity to adequately administer its Recovery Act funding in accordance with requirements. Our review of the Authority was limited to gaining an understanding of internal controls over the...

The U. S. Department of Housing and Urban Development's Office of Inspector General reviewed the City of Ogden, UT’s (City) HOME Investment Partnerships Program (HOME) to determine whether the City effectively established HOME projects, ensured that HOME funds were used for eligible HOME expenses, and properly monitored the HOME projects. The City appropriately established HOME projects, used HOME funds for eligible HOME expenses, and...

We audited the State of Washington’s Neighborhood Stabilization Program. The audit was part of our fiscal year 2009 annual audit plan. We selected the State because it was responsible for the distribution of funds to the entitlement areas, as well as to nonentitlement areas for the state of Washington. Our objective was to determine whether the State’s Program implementation was compliant with U.S. Department of Housing and Urban Development...

We reviewed Bank of America's (servicer) home equity conversion mortgage (HECM) servicing division located in Seattle, Washington. Bank of America is one of the largest lenders of HECM mortgages for properties located in the five southwest states in the U. S. Department of Housing and Urban Development's (HUD) Region VI jurisdiction. Our objective was to determine whether the servicer complied with HUD regulations, specifically,...

We audited single-family loan originations at Eagle Home Mortgage (Eagle Mortgage), located in Kirkland, Washington, to determine whether it originated Federal Housing Administration (FHA)-insured loans in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. Eagle Mortgage did not always originate FHA insured loans in accordance with HUD requirements. Specifically, Eagle Mortgage did not follow HUD's...

The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited SecurityNational Mortgage Company (SecurityNational), a Federal Housing Administration (FHA)-approved direct endorsement lender, to determine whether it properly underwrote insured loans and whether its quality control function met requirements. SecurityNational did not follow HUD regulations when underwriting 18 FHA-insured loans. One of the...

At the request of the Region X Multifamily Hub, we audited the John C Cannon Retirement and Assisted Living Residence (project) to determine if the project owner used project funds in accordance with the regulatory agreement. We found that the project owner failed to get HUD approval for leases costing $189,000, used project funds to obtain unneeded equipment costing $10,700, and failed to keep adequate documentation to support expenditures...