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 Venta Financial Group’s Federal Housing Administration (FHA) loan origination because it was one of the top lenders that originated FHA-insured loans with downpayment assistance from the City of Las Vegas. A previous U.S. Department of Housing and Urban Development, Office of Inspector General (HUD OIG) audit (Evergreen Home Loans, 2016-LA-1011) found that Evergreen originated FHA-insured loans in connection with the…
September 20, 2017
Memorandum
#2017-LA-1801
We audited MB Financial Bank, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of our efforts to protect the integrity of the U.S. Department of Housing and Urban Development’s (HUD) single-family housing mortgage insurance programs. We selected MB Financial for review based on an analysis of underwriting and default data maintained by HUD. Our objective was to determine whether MB…
September 20, 2017
Report
#2017-NY-1011
We audited the State of New York’s Community Development Block Grant Disaster Recovery-funded Non-Federal Share Match Program. We conducted this audit because the State had used approximately $223 million for the program as of December 2016 and a U.S. Department of Housing and Urban Development (HUD) review of the program had identified weaknesses related to compliance monitoring and recordkeeping. Our objective was to…
September 15, 2017
Report
#2017-NY-1010
We audited the Office of the Commissioner for Municipal Affairs’ (OCMA) Puerto Rico State Community Development Block Grant program. We selected OCMA for review based on concerns regarding the slow progress of the Municipality of San Sebastian’s fine arts center. The objective of this audit was to determine whether OCMA effectively used State Block Grant funds on a fine arts center that met a national objective of the…
September 15, 2017
Memorandum
#2017-AT-1802
We audited JPMorgan Chase’s (Chase) Federal Housing Administration Home Affordable Modification Program (FHA-HAMP) stand-alone partial claims. We selected Chase for review based on our analysis of risk factors of loan servicers that filed FHA-HAMP stand-alone partial claims and in accordance with our annual audit plan. Our audit objective was to determine whether Chase complied with the FHA-HAMP stand-alone partial claim…
September 15, 2017
Report
#2017-AT-1012
Very low REAC scores are not prevalent across ORCF’s portfolio. The majority of RCFs that received a REAC score scored at least 80 on their last inspection, and more than three quarters scored at least 60. Despite the small percentage of RCFs that scored below 31, we noticed an overall decline in REAC inspection scores across ORCF’s portfolio from 2000 to 2016.
REAC has adopted an inspection process that applies uniformly…
September 15, 2017
Report
#2017-OE-0011
We audited the Fort Bend County Community Development Department based on our risk analysis and as part of our annual audit plan to review Office of Community Planning and Development (CPD) funds. The audit objective was to determine whether the Department (1) properly carried out its activities as shown in its submission to the U.S. Department of Housing and Urban Development (HUD) in an economical, efficient, and effective…
September 14, 2017
Report
#2017-FW-1013
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of servicers’ use of loss mitigation programs. The audit was initiated in response to an Office of Inspector General preaudit analysis of HUD data, which determined that servicers may not always evaluate borrowers with delinquent mortgages for loss mitigation. Our audit objective was to determine whether HUD had adequate controls to ensure…
September 14, 2017
Report
#2017-LA-0004
We audited the City of Las Vegas’, Homebuyer Assistance Program under the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program 3 (NSP3). We initiated this review because of a prior HUD Office of Inspector General audit of Evergreen Home Loans issued September 12, 2016 (audit report 2016-LA-1011). The Evergreen Home Loans audit report identified 14 loans that received home-buyer…
September 13, 2017
Report
#2017-LA-1008
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited public housing agency compliance with HUD’s flat rent requirements. We initiated this audit based on multiple external audits conducted by the HUD Office of Inspector General, which showed that housing authorities were unaware of or did not properly implement the flat rent requirements. Our objective was to determine whether…
September 12, 2017
Report
#2017-KC-0007
We audited the City of New Orleans’ HOME Investment Partnerships program in response to a citizen complaint alleging that the City did not monitor its HOME-assisted projects and in accordance with our annual audit plan. Our objective was to determine the validity of the complaint allegations and whether the City administered its HOME program in accordance with Federal and HUD requirements.
We found that complaint had merit as…
September 06, 2017
Report
#2017-FW-1012
We audited the U.S. Department of Housing and Urban Development’s (HUD) resident home-ownership program grant for Lakeview East Cooperative (project) based on the results of a risk assessment of multifamily housing programs in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin). The audit was part of the activities in our fiscal year 2017 audit plan. Our objective was to…
September 05, 2017
Report
#2017-CH-1006
We audited the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant program’s direct home-ownership assistance activities. We conducted the audit because it was included in our audit plan based on recent HUD, Office of Inspector General, audits that found issues with home-ownership assistance in the HOME Investment Partnerships program. Our audit objective was to determine whether HUD…
September 05, 2017
Report
#2017-PH-0001
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…
August 29, 2017
Report
#2017-FW-1011
We audited the Stone Terrace Apartments’ Section 8 housing assistance payments program based on a citizen’s complaint alleging mismanagement of its housing assistance payments contract. The audit was part of the activities in our fiscal year 2017 annual audit plan. Our audit objective was to determine whether the management agent administered the project’s program in accordance with the owner’s contract with the U.S.…
August 25, 2017
Report
#2017-CH-1005
We audited the Lexington Housing Authority’s Rental Assistance Demonstration Program (RAD) conversion. We selected the Authority based on concerns from the U.S. Department of Housing and Urban Development’s (HUD) North Carolina State Office of Public Housing and a request from the Housing Authority’s Board of Commissioners. Our audit objective was to determine whether the Authority administered its RAD program in…
August 21, 2017
Report
#2017-AT-1011
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, assisted the U.S. Department of Justice Washington D.C., and the U.S. Attorney’s Offices of the Northern District of Georgia and Northern District of California, in the civil investigation of Prospect Mortgage, LLC.
Based in part on our review, the Federal Government alleged that Prospect violated the False Claims Act when it originated and…
August 21, 2017
Memorandum
#2017-AT-1801
We audited the Housing Choice Voucher and public housing programs at the West Warwick Housing Authority as a result of concerns from the U.S. Department of Housing and Urban Development (HUD) and a hotline complaint. The audit objectives were to determine whether (1) procurements were executed in accordance with Federal regulations, (2) West Warwick officials established adequate controls over the Housing Choice Voucher and…
August 18, 2017
Report
#2017-BO-1006
The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Denver Housing Authority of Denver, CO for calendar years 2013-2015. The audit was initiated because of deficiencies found in other procurement audits in our region. The Authority is the largest recipient of U.S. Department of Housing and Urban Development (HUD) funds in the region, and we wanted to ensure that it did not have the…
August 18, 2017
Report
#2017-DE-1002
We audited the City of Albuquerque’s Community Development Block Grant (CDBG) program based on our risk analysis and as part of the Office of Inspector General’s annual audit plan to review community planning and development funds. The audit objective was to determine whether the City administered its CDBG program in accordance with U.S. Department of Housing and Urban Development (HUD) requirements.
The City did not always…
August 16, 2017
Report
#2017-FW-1010