Clarion Mortgage Capital Did Not Fully Comply with HUD’s or Its Own Quality Control Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the Leawood, Kansas, branch office of Clarion Mortgage Capital, a Federal Housing Administration (FHA)-approved loan correspondent. Our audit objective was to determine whether Clarion Mortgage Capital followed HUD requirements for implementing a quality control program. We concluded that Clarion Mortgage Capital did not fully comply with HUD's or…
December 15, 2008
Report
#2009-KC-1002
The Township of South Orange Village, New Jersey, Did Not Always Disburse Community Development Block Grant Funds As Per HUD Requirements
We completed an audit the Community Development Block Grant (CDBG) program administrated by the Township of South Orange Village (Township), a subgrantee of the Essex County Consortium (County). Our audit objectives were to determine whether the Township disbursed CDBG funds efficiently and effectively in accordance with its submission to the U.S. Department of Housing and Urban Development (HUD) and with applicable rules and regulations, had a…
December 14, 2008
Report
#2009-NY-1005
The Economic Development Corporation, Newark, New Jersey, Did Not Administer Its Community Development Block Grant Program in Accordance with HUD Requirements
We completed an audit of the Community Development Block Grant (CDBG) program administered by the Economic Development Corporation (Corporation), a subgrantee of Essex County Consortium (the County). Our audit objectives were to determine whether the Corporation adequately administered its CDBG program in accordance with applicable rules and regulations. Specifically, whether it efficiently and effectively disbursed CDBG funds, had a financial…
December 06, 2008
Report
#2009-NY-1004
Review of Single-Family Partial Claims Collection Process
We audited the single-family partial claims collection process and its effectiveness in protecting the Federal Housing Administration?s (FHA) insurance fund. Our overall objective was to determine whether the single-family partial claims program operated effectively and efficiently to minimize costs to the insurance fund and collect amounts due in a timely manner. The National Service Center (NSC) and its contractors did not properly implement…
November 18, 2008
Report
#2009-DP-0001
Actions Under Program Civil Remedies Act, Washington Mutual Bank, Seattle, Washington
We audited late endorsement payment histories at Washington Mutual Bank (Washington Mutual), Seattle, Washington. We reported the results of our review in Audit Report 2005-SE-1006, issued on July 5, 2005. After the audit report was issued and the report recommendations were closed out in HUD’s Audit Resolution and Corrective Actions Tracking System (ARCATS), we recommended that HUD’s Office of General Counsel take additional sanctions…
November 15, 2008
Memorandum
#2009-SE-1801
CitiMortgage Did Not Follow HUD Requirements When Underwriting 20 Loans and Performing Its Quality Control Program
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited CitiMortgage, Incorporated (CitiMortgage). Our audit objectives were to determine whether CitiMortgage followed U.S. Department of Housing and Urban Development (HUD) requirements for underwriting loans and performing its quality control program for single-family production. We concluded that CitiMortgage did not properly underwrite 20 of the 60…
November 11, 2008
Report
#2009-KC-1001
The City of Newburgh, New York, Needs to Make Improvements in Administering Its Section 108 Loan Guarantee Program
We completed an audit of the City of Newburgh, New York's (City) administration of its Section 108 Loan Guarantee program. The objectives of our audit were to determine whether the City ensured that (1) Section 108 loans and related activities were administered in compliance with CDBG program objectives and (2) subsequent CDBG funds used for Section 108 loan repayments were necessary, reasonable, and in accordance with all applicable…
November 06, 2008
Report
#2009-NY-1001
The City of Newburgh, New York, Needs to Make Improvements in Administering Its Section 108 Loan Guarantee Program
November 05, 2008
Report
#2009-NY-1001
Audit of the Federal Housing Administration’s Financial Statements for Fiscal Years 2008 and 2007
This report presents the results of Urbach, Kahn, and Werlin LLP's (UKW) audit of the Federal Housing Administration's (FHA) financial statements for the fiscal years ended September 30, 2008 and 2007.
In UKW's opinion, the financial statements present fairly, in all material respects, FHA's financial position as of September 30, 2008 and 2007, and its net costs, changes in net position, and combined budgetary resources for the years then ended…
November 05, 2008
Report
#2009-FO-0002
New Phoenix Assistance Center, Chicago, Illinois, Failed to Manage Its Supportive Housing Program Grants
The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the New Phoenix Assistance Center's (Center) Supportive Housing Program (Program) grants. The audit was part of the activities in our fiscal year 2007 annual audit plan. We selected the Center based upon HUD's Office of Community Planning and Development being a priority audit area for our office and a request from HUD's Chicago Office of Community…
October 23, 2008
Report
#2009-CH-1001
HUD Did Not Always Ensure Thats FHA Lenders Complied with Federal Requirements Regarding Home Equity Conversion Mortgages
The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited HUD's oversight of the Federal Housing Administration (FHA)-insured home equity conversion mortgages (HECM) program. We initiated the audit as part of the activities in our 2008 annual audit plan. Our audit objective was to assess elements of HUD's oversight of the HECM program. This is the first of two audit reports regarding the HECM program and…
September 28, 2008
Report
#2008-CH-0001
HUD Did Not Always Ensure Thats FHA Lenders Complied with Federal Requirements When Submitting Loans for New Construction Properties Located in FEMA's Designated Special Flood Hazard Areas
The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited HUD's oversight of the underwriting of Federal Housing Administration (FHA)-insured loans for new construction properties located in the Federal Emergency Management Agency's (FEMA) designated special flood hazard areas. We initiated the audit as part of the activities in our 2007 annual audit plan. Our objective was to determine whether HUD had…
September 28, 2008
Report
#2008-CH-0002
The City of Dayton, Ohio, Lacked Adequate Controls Regarding Staff Salaries Paid from Its Community Development Block Grant Program
The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General audited the City of Dayton's (City) Community Development Block Grant program (program). The audit was part of the activities in our fiscal year 2008 annual audit plan. We selected the City based upon our increased emphasis on HUD's Office of Community Planning and Development's programs and a citizen's complaint. Our objectives were to determine whether…
September 25, 2008
Report
#2008-CH-1015
Wells Fargo Mortgage, San Antonio, Texas, Loans Generally Complied with Reverse Mortgage Requirements
We audited Wells Fargo Mortgage (Wells Fargo) as part of our annual audit plan objective of improving the integrity of single family insurance programs. Our objective was to determine whether Wells Fargo complied with U. S. Department of Housing and Urban Development (HUD) origination requirements for the Home Equity Conversion Mortgage program, commonly known as a reverse mortgage.
Wells Fargo generally complied with HUD's reverse mortgage…
September 24, 2008
Report
#2008-FW-1013
First National Bank, Gillette, Wyoming, Did Not Follow HUD Requirements in Originating and Underwriting Insured Loans and Did Not Have a Quality Control Plan
The U.S. Department of Housing and Urban Development's Office of Inspector General audited First National Bank of Gillette, Wyoming, a Federal Housing Administration (FHA)-approved direct endorsement lender, to determine whether it properly processed insured loans and to determine whether its quality control plan met the U.S. Department of Housing and Urban Development's (HUD) requirements. First National Bank did not follow HUD regulations…
September 23, 2008
Report
#2008-DE-1004
The State of Colorado Did Not Comply with Community Development Block Grant Program Requirements
We audited the State of Colorado (State), Division of Housing's (Division) Community Development Block Grant (CDBG) program to determine whether the Division (1) awarded CDBG funds to ineligible projects and (2) properly identified and reported program income data.
The Division used CDBG funds for ineligible and questionable projects. This condition occurred because management's main focus was on selecting projects that were for the greater…
September 22, 2008
Report
#2008-DE-1003
HUD’s Office of Single Family Housing Had Not Fully Implemented an Internal Control Structure in Accordance with Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited HUD's Office of Single Family Housing (Single Family) due to concerns over the expected increase in Federal Housing Administration (FHA)-insured loans generated by newly implemented and proposed FHA programs. The objective of our audit was to determine whether Single Family had implemented an internal control structure in accordance with Government…
September 07, 2008
Report
#2008-KC-0006
Heartland Funding Corporation Violated the Real Estate Settlement Procedures Act and Did Not Fully Comply with HUD’s Underwriting, Quality Control, or Employee Compensation Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited Heartland Funding Corporation (Heartland Funding) because of its high 30-day delinquency rate. More than 23 percent of the loans that it originated from January 2006 through December 2007 had been at least 30 days delinquent (past due). Our audit objectives were to determine whether Heartland Funding followed HUD requirements for (1) borrower…
September 07, 2008
Report
#2008-KC-1006
Implementation Weaknesses Existed in All Major Phases of the FHA Appraiser Review Process
We audited HUD’s appraiser review process as part of our annual plan. The audit was proposed in response to a single-family loan origination audit that raised concerns regarding HUD’s oversight of FHA appraisers. This is the second of two audits covering HUD’s controls over the appraiser review process. The first audit report, 2008-LA-0002, focused on HUD’s oversight of the FHA appraiser roster; whereas this audit report focuses on the…
September 03, 2008
Report
#2008-LA-0003
Actions under Program Fraud Civil Remedies Act
We completed a review of First Source Financial USA (First Source), a former nonsupervised loan correspondent approved to originate FHA-insured loans. The objective was to determine whether First Source originated FHA loans and had a quality control plan that complied with HUD rules and regulations. We reviewed 20 loans amounting to more than $2.5 million that were in claim status. Our review disclosed that First Source: (1) allowed…
September 02, 2008
Memorandum
#2008-LA-1801