The Offices of Audit and Evaluation supervise and conduct independent and objective audits, evaluations, and other reviews of U.S. Department of Housing and Urban Development (HUD) programs and activities to ensure they operate economically, efficiently, and effectively. This page contains links to our audit and evaluation reports and memoranda.
We audited loanDepot, LLC, based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division detailing a separate lender that originated Federal Housing Administration (FHA)-insured loans containing ineligible downpayment assistance gifts. The focus on loans with Golden State Finance Authority (Golden State) gifts was a result of a separate audit (2015-LA-1009) on loanDepot’s use of…
September 29, 2015
Report
#2015-LA-1010
We audited loanDepot based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division detailing a separate lender that originated Federal Housing Administration (FHA)-insured loans containing ineligible downpayment assistance gifts. We selected loanDepot due to its high volume of loans with downpayment assistance funds. Our objective was to determine whether loanDepot…
September 29, 2015
Report
#2015-LA-1009
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited LoanCare, LLC, Virginia Beach, VA regarding its post-foreclosure activities as a single family master subservicer for the Government National Mortgage Association (Ginnie Mae). Our objective was to determine whether LoanCare conveyed foreclosed-upon properties held on behalf of Ginnie Mae, filed claims with FHA, and remitted the funds…
September 29, 2015
Report
#2015-KC-1012
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…
September 29, 2015
Memorandum
#2015-CH-1801
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, Northern District of Georgia, in conducting a review of First Tennessee has its principal place of business in Memphis, TN and is a wholly owned subsidiary of First Horizon Financial Corporation. First Tennessee became an FHA-approved direct…
September 28, 2015
Memorandum
#2015-AT-1801
We audited the Pennsylvania Housing Finance Agency’s implementation of the U.S. Department of Housing and Urban Development’s (HUD) Loss Mitigation program for loans insured by the Federal Housing Administration (FHA). We conducted the audit because the Agency had the largest active portfolio and the largest number of delinquent loans for servicers located in Pennsylvania as of October 2014. Our objectives were to…
September 27, 2015
Report
#2015-PH-1006
We audited the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration’s (FHA) Home Affordable Modification Program (HAMP) partial claim option because we noted issues in the postclaim review process during a previous partial claim audit.1 Our audit objective was to determine whether HUD had adequate controls over its postclaim reviews and adequate policies in place to ensure that servicers properly…
September 17, 2015
Report
#2015-LA-0003
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program. Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at the same time.…
September 15, 2015
Memorandum
#2015-PH-1807
We audited First Source Bank, a Federal Housing Administration (FHA) supervised lender located in South Bend, IN. We selected First Source based on our analysis of risk factors of single-family loan servicers in Region 5’s jurisdiction4. Our audit objectives were to determine whether First Source (1) consistently and appropriately applied loss mitigation options for eligible borrowers, (2) accurately reported the…
September 10, 2015
Report
#2015-CH-1006
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…
September 09, 2015
Report
#2015-CH-1005
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program. Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at the same time.…
August 25, 2015
Memorandum
#2015-PH-1806
The Office of Inspector General (OIG) conducted an audit of Opportunity in Living (OIL), Centennial, CO’s participation in the U.S. Department of Housing and Urban Development’s (HUD) Single Family Property Disposition program. Our audit objective was to determine whether OIL’s purchase of HUD-owned homes during the exclusive listing period violated HUD regulations at 24 CFR (Code of Federal Regulations) Part 291.
We…
August 24, 2015
Memorandum
#2015-DE-1801
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 strategic objective to protect the integrity of housing insurance and guarantee programs and because of residency issues identified in prior audits of the HECM program. Our objective was to determine whether HUD’s Office of Single Family Housing had effective controls to ensure that…
August 20, 2015
Report
#2015-PH-0004
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Section 203(k) Rehabilitation Loan Mortgage Insurance program as part of the activities in our fiscal year 2014 annual audit plan. Our audit objective was to determine whether HUD had adequate oversight of its Section 203(k) program.
HUD needs to improve its monitoring of lenders for compliance with the Section 203(k) program requirements…
July 30, 2015
Report
#2015-CH-0001
We audited NOVA Financial & Investment Corporation based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division detailing a separate lender that originated Federal Housing Administration (FHA)-insured loans that contained ineligible downpayment assistance gifts. The HUD Office of Inspector General’s (OIG) analysis identified NOVA as a lender with the highest origination…
July 08, 2015
Report
#2015-LA-1005
We completed a review of First Niagara Bank’s servicing of Federal Housing Administration (FHA)-insured mortgages and its implementation of the U.S. Department of Housing and Urban Development’s (HUD) Loss Mitigation program. We selected First Niagara Bank based on an Office of Inspector General risk assessment of single-family lenders. The objective of the audit was to determine whether First Niagara Bank properly…
May 21, 2015
Report
#2015-NY-1006
We reviewed the general and application controls over the U.S. Department of Housing and Urban Development’s (HUD) Loan Accounting System (LAS) as part of the internal control assessments required for the fiscal year 2014 financial statement audit under the Chief Financial Officer’s Act of 1990. Our objective was to review the effectiveness of general and application controls over LAS for compliance with HUD information…
December 07, 2014
Report
#2015-DP-0004
We reviewed the general and application controls over the Federal Housing Administration’s subsidiary ledger as part of the internal control assessments required for the fiscal year 2014 financial statement audit under the Chief Financial Officer’s Act of 1990. Our objective was to review the effectiveness of general and application controls over the subsidiary ledger for compliance with the U.S. Department of Housing and Urban…
November 05, 2014
Report
#2015-DP-0003
We reviewed the general and application controls over the Federal Housing Administration's (FHA) Single Family Housing Enterprise Data Warehouse as part of the internal control assessments of FHA’s principal financial statements for fiscal year 2014. Our objective was to determine the effectiveness of general and application controls over the data warehouse for compliance with HUD information technology policies and Federal…
October 20, 2014
Report
#2015-DP-0001
We audited Peoples Home Equity, Inc.(Peoples), a Federal Housing Administration (FHA) approved nonsupervised direct endorsement lender located in Brentwood, TN. We selected Peoples based on its high default rates. The audit was part of our annual audit plan to review single family programs and lenders. Our audit objectives were to determine whether Peoples complied with HUD requirements when it originated and…
September 29, 2014
Report
#2014-AT-1013