We audited the City of Chicago’s HOME Investment Partnerships Program.  We selected the City’s Program based upon our analysis of risk factors related to Program grantees in Region 5’s jurisdiction.  Our objectives were to determine whether the City complied with HUD’s requirements regarding (1) leases between rental new construction projects’ owners and households, (2) use and reporting of Program income, and (3) monitoring…

We audited Prudential’s underwriting of a $49 million mortgage loan to develop the Preserve at Alafia, a multifamily project located in Riverview, FL.  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 the Preserve of Alafia according to the U.S. Department of Housing and Urban…

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…

The U.S. Department of Housing and Urban Development – Office of Inspector General audited HUD’s Federal Housing Administrations single family mortgage seven-loan limit.  We initiated this review based on issues identified in an audit of the Wyoming Housing Opportunities Association in memorandum 2013-DE-1801.  Our objective was to determine the impact of investor loan properties on the FHA fund.  We found multiple…

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 goal to improve the integrity of HUD’s single-family insurance 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 HECM…

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of property flipping as part of the activities in our fiscal year 2013 annual audit plan, which includes contributing to the protection of the integrity of housing insurance and guarantee programs.  Our audit objective was to determine whether HUD had adequate oversight of its property-flipping waiver. HUD did not always (1) ensure that lenders…

The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General (OIG), in conjunction with the Department, the U.S. Department of Justice, and the U.S. Attorney’s Offices for the Eastern District of Michigan and Northern District of Ohio, conducted a joint investigation of U.S. Bank National Association’s (U.S. Bank) loan originations, underwriting practices, and quality control program for Federal Housing…

Our office assisted the U.S. Department of Justice (DOJ), U.S. Attorney’s Office, Eastern District of New York, in conducting an investigation of Bank of America’s origination of mortgage loans insured by the Federal Housing Administration (FHA) from May 1, 2009, through March 31, 2012.   On August 20, 2014, Bank of America entered into a settlement agreement to pay $16.65 billion, of which $9.65 billion resolved pending and…

The U.S. Department of Housing and Urban Development – Office of Inspector General audited the City of Colorado Springs (City) in response to a citizen’s complaint received by our office.  The complainant alleged the City committed HOME Investment Partnerships Program (HOME) funds without written agreements, delayed the reporting of Community Development Block Grants (CDBG) program income in a timely manner, and improperly…

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…

We audited the State of Vermont, Department of Housing and Community Development’s disaster recovery programs.  We initiated this audit because of the significant funding awarded and the Boston Office of Community Planning and Development’s concerns about the State’s capacity to administer this funding.  Our audit objective was to determine whether the State administered its disaster recovery programs effectively and…

We initiated a review of the City of Los Angeles’ Community Development Block Grant (CDBG) program due to concerns that CDBG-funded assets may be at risk.  We performed our review to address questionable costs identified during a prior Office of Inspector General review (audit report 2014-LA-0001).  Our objective was to determine whether the City maintained the required documentation for its CDBG-funded projects to support…

We audited EverBank’s Preforeclosure Sale Program because it had the highest Florida preforeclosure sale claims of all servicing lenders located in Florida and more than 50 percent of its Florida Federal Housing Administration (FHA) claims were from preforeclosure sales with more than $12.9 million paid from 2011 through 2013.  Our objective was to determine whether EverBank properly determined that mortgagors were eligible to…

We audited the Housing Authority of the City of Stamford, doing business as Charter Oak Communities.  We received an anonymous complaint against the Authority related to an alleged improper procurement.  The complainant alleged that Authority officials awarded a contract to an employee’s spouse without following procurement and conflict-of-interest requirements.  In addition, a previous audit (Audit report number 2012-…

We audited Cornerstone Home Lending, formerly known as Cornerstone Mortgage Company.  We selected Cornerstone based upon a high default rate at Cornerstone’s Branch 87 in 2007 through 2009.  Our audit objectives were to determine whether Cornerstone (1) complied with HUD and Federal Housing Administration (FHA) regulations when originating and underwriting FHA-insured mortgages and (2) implemented a quality control plan that…

We audited the City of Pomona’s Neighborhood Stabilization Programs (NSP1 and NSP3).  We initiated the audit because of a hotline complaint with concerns regarding the administration of program funds.  Our objective was to determine whether the City administered its NSP funds in accordance with applicable U.S. Department of Housing and Urban Development (HUD) rules and requirements.  Specifically, we wanted to determine…

The U.S. Department of Housing and Urban Development – Office of Inspector General audited the Helena, MT Housing Authority in response to a hotline complaint alleging a former employee of the housing authority improperly released housing choice voucher holders’ personally identifiable information.  The objective of our review was to determine whether the allegation had merit. A former Authority employee did improperly release…

The U.S. Department of Housing and Urban Development – Office of Inspector General audited the Wellston, MO Housing Authority’s administration of the Community Service and Self-Sufficiency Requirement (CSSR) due to its unusually low reported rate of compliance with the requirement.  Also, this audit will complement our upcoming nationwide internal audit of the requirement.  Our audit objective was to determine whether the…

The U.S. Department of Housing and Urban Development’s (HUD), Office of Inspector General reviewed HUD’s Federal Housing Administration (FHA) loss mitigation program.  We initiated this audit due to our concern that FHA might have incurred costs while allowing lenders to make large amounts of money by modifying defaulted FHA-insured loans.  Our audit objective was to determine the extent to which loans modified under the FHA…

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…