We audited Gloucester Township, NJ's administration of its Community Development Block Grant funds that it received under the American Recovery and Reinvestment Act of 2009. We selected the Township for an audit because we received two complaints alleging that it misused stimulus funds and overpaid for services and because of our mandate to audit Recovery Act activities. Our audit objective was to determine whether the Township obligated...

We audited Four Freedoms House of Philadelphia, Inc.’s management of its Section 202 housing project. We selected Four Freedoms for an audit because we received a complaint alleging that it mismanaged its Section 202 housing project. Our audit objective was to determine whether Four Freedoms managed its Section 202 housing project according to the requirements of its regulatory agreement and applicable HUD requirements. We focused the audit...

We audited J&M Mortgage Brokers, Ltd., dba Mortgages USA, a Dallas, TX-based nonsupervised direct endorsement lender. We selected J&M because it had a high rate of defaults and claims within the first year. Our audit objectives were to determine whether J&M originated Federal Housing Administration (FHA)-insured single family mortgages in accordance with U. S. Department of Housing and Urban Development (HUD) regulations,...

The City did not expend Brownfields and Section 108 funds awarded for the development of the project in accordance with HUD requirements. Specifically, the City used loan and grant funds for an ineligible project and expended grant funds after the grant deadline. As a result, it expended (1) $3.8 million in loan funds on an ineligible project, (2) $625,000 in grant funds on an ineligible project after the grant expenditure deadline, and (3) an...

As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed Ally Financial, Incorporated’s foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other...

As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed Bank of America’s foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews....

As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed Wells Fargo’s foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews. OIG...

As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) mortgage servicers (Bank of America, Wells Fargo Bank, CitiMortgage, JP Morgan Chase, and Ally Financial, Incorporated) we reviewed CitiMortgage’s foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other four reviews. OIG...

As part of the Office of Inspector General’s (OIG) nationwide effort to review the foreclosure practices of the five largest Federal Housing Administration (FHA) servicers (Bank of America, Wells Fargo Bank, CitiMortgage, Ally Financial, Incorporated, and JPMorgan Chase Bank), we reviewed JPMorgan Chase Bank’s (Chase) foreclosure and claims processes. In addition to this memorandum, OIG issued separate memorandums for each of the other four...

We audited the U. S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) 2008 Disaster Recovery assistance for Hurricane Ike and other disasters, administered by the Texas Department of Rural Affairs (the State). Our objective was to determine whether the State administered HUD’s Disaster Recovery funds used for infrastructure and revitalization contracts in compliance with the supplemental...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the East St. Louis Housing Authority’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund program. Our audit objective was to determine whether the Authority (1) complied with applicable procurement requirements and properly managed its Recovery Act contracts, (2) properly drew down and expended funds for eligible activities, and (3...

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the State of Wisconsin’s Department of Commerce’s Lead-Based Paint Hazard Control program under the American Recovery and Reinvestment Act of 2009. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the State for review based on a citizen’s complaint forwarded to our office from the U.S. Department of Commerce’s...

We performed an audit of PrimeLending, A PlainsCaptial Company, located in Dallas, TX, a Federal Housing Administration (FHA) direct endorsement lender. We selected PrimeLending for audit because of its high default rate in the Houston, Dallas, and Fort Worth, TX, offices as compared to the average default rate for all FHA loans in those offices. Our objective was to determine whether PrimeLending complied with U. S. Department of Housing and...

We audited the State of Indiana’s HOME Investment Partnerships Program. The audit was part of the activities in our fiscal year 2011 annual audit plan. We selected the State based upon our analysis of risk factors relating to Program grantees in Region V’s (see footnote 1) jurisdiction. Our objectives were to determine whether the Indiana Housing and Community Development Authority, the administrator of the State’s Program, complied with the...

We audited the Springfield Housing Authority’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 Authority based upon our analysis of risk factors relating to the housing agencies in Region V’s jurisdiction. Our objective was to determine whether the Authority administered its grant in accordance with...

The U.S. Department of Housing and Urban Development, Office of Inspector General initiated an audit of the Opelousas Housing Authority’s Public Housing Capital Fund Stimulus Recovery Act-funded grant as part of our annual audit plan. Our objective was to determine whether the Authority (1) followed the requirements of the Recovery and Reinvestment Act of 2009 when obligating its Recovery Act capital funds and when procuring contracts for goods...

We audited the City of Syracuse, NY, pertaining to its Economic Development Initiative (EDI)-Special Project grants. The audit objective was to determine whether City officials were administering EDI Special Project grants effectively, efficiently, and economically in accordance with applicable rules and regulations. Specifically, we wanted to determine whether City officials expended EDI funds for eligible activities that were fully supported...

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program based on our annual audit plan and our strategic goal to improve the integrity of HUD’s single-family programs. This is the first of two reports that we plan to issue on HUD’s oversight of the program. Our objective was to determine whether HUD’s controls effectively ensured that HECM loan borrowers complied...

We audited Mortgage Lending Direct, Inc. (MLD), a nonsupervised lender (see footnote -1)located in Florham Park, NJ, in support of the U.S. Department of Housing and Urban Development (HUD), Office of the Inspector General’s (OIG) goal of improving the integrity of the single-family insurance program. We selected MLD for audit because its 8.88 percent default rate for Federal Housing Administration (FHA)-insured single-family loans with...

We audited the City of Newark, NJ’s Homelessnes Prevention and Rapid Re-Housing Program (HPRP) in support of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) goal to review the expenditure of American Recovery and Reinvestment Act funds and contribute to improving HUD’s execution and accoutability of fiscal responsibilites. The audit objective was to determine whether City of Newark officials...