HUD Did Not Have Adequate Controls To Ensure That Partial Claim Notes for FHA Loans Were Properly Tracked for Future Collection
We audited the U.S. Department of Housing and Urban Development’s (HUD) tracking of partial claim notes. The audit was initiated in response to an Office of Inspector General preaudit analysis of HUD’s Single Family Data Warehouse (SFDW) data, which determined that partial claim notes may not have been properly tracked in HUD’s Single Family Mortgage Asset Recovery Technology (SMART) system (see Scope & Methodology section for…
September 20, 2018
Report
#2018-LA-0005
HUD Did Not Always Identify and Collect Partial Claims Out of Surplus Proceeds From Nonconveyance Foreclosures
The U.S. Department of Housing Urban Development (HUD), Office of Inspector General audited HUD to determine whether it identified and collected outstanding partial claims out of surplus proceeds from nonconveyance foreclosures. We initiated this audit because we learned while doing unrelated audit work that a trustee attorney held surplus proceeds from two nonconveyance foreclosures and HUD had not claimed these funds to offset earlier…
September 19, 2018
Report
#2018-KC-0004
The State of Connecticut Did Not Ensure That Its Grantees Properly Administered Their Housing Rehabilitation Programs
We audited the State of Connecticut’s Small Cities Community Development Block Grant program based on an Office of Inspector General risk assessment, which ranked the State as the highest risk grantee in Connecticut. Our audit objective was to determine whether the State ensured that its grantees properly administered their housing rehabilitation programs. We also assessed various complaints made against the program to determine…
September 18, 2018
Report
#2018-BO-1005
Towne Mortgage Company, Troy, MI, Generally Implemented Its Loss Mitigation Program in Accordance With HUD’s Requirements
We audited Towne Mortgage Company, a Federal Housing Administration (FHA) nonsupervised lender, as part of the activities in our fiscal year 2018 annual audit plan. We selected Towne Mortgage based on our analysis of risk factors for single-family servicing lenders in Region 5’s jurisdiction.[1] Our audit objective was to determine whether Towne Mortgage properly implemented its Loss Mitigation program for FHA-insured loans in…
September 17, 2018
Report
#2018-CH-1005
HUD’s DASP Note Sales Generally Resulted in Lower Loss Rates Than Conveyance Claims
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited HUD’s single-family note sales program. This is the third in a series of audits on the note sales program. The first audit, 2017-KC-0006, reported that HUD did not conduct rulemaking or develop formal procedures for its single-family note sales program. The second audit, 2017-KC-0010, reported that HUD generally ensured that…
September 05, 2018
Report
#2018-KC-0003
HUD’s Technical Assistance Award Selection and Assignment Process for Continuum of Care and Homeless Programs Was Conducted in an Appropriate Manner
We audited the U.S. Department of Housing and Urban Development’s (HUD) Community Compass and Technical Assistance and Capacity Building program due to a complaint specific to the Continuum of Care (CoC) and homeless portion of the program. The complaint alleged that the Office of Special Needs Assistance Programs had been steering technical assistance notice of funding availability applicants toward coordinating or subcontracting with a…
August 06, 2018
Report
#2018-LA-0003
The Sacramento Housing and Redevelopment Agency, Sacramento, CA, Did Not Always Use Community Development Block Grant Funds in Accordance with HUD Requirements or Its Own Policies
We audited the Sacramento Housing and Redevelopment Agency’s Community Development Block Grant (CDBG) program, based on an Office of Inspector General risk assessment and U.S. Department of Housing and Urban Development (HUD) concerns. The objective of our audit was to determine whether the Agency used the City of Sacramento’s CDBG funds in accordance with HUD requirements and adequately monitored its subrecipients.
The Agency…
July 24, 2018
Report
#2018-LA-1006
The City of Modesto, CA, Did Not Use Community Development Block Grant Funds in Accordance with HUD Requirements
We audited the City of Modesto’s Community Development Block Grant (CDBG) program. We selected the City based on a hotline complaint (HC-2017-2082) regarding the City’s rehabilitation program and the U.S. Department of Housing Development’s (HUD) and the HUD Office of Inspector General’s risk assessments. The objective of the audit was to determine whether the City used CDBG funds in accordance with HUD requirements, focusing on its…
July 02, 2018
Report
#2018-LA-1005
CPD’s Risk Assessment and Monitoring Program Did Not Provide Effective Oversight of Federal Funds
We audited the U.S. Department of Housing and Urban Development (HUD), Office of Community Planning and Development’s (CPD) risk assessment and monitoring of its grantees. We initiated this assignment due to significant findings previously reported, which showed that CPD did not have effective risk assessment or monitoring of the State Community Development Block Grant program at either the field office or national level. …
June 25, 2018
Report
#2018-FW-0001
The City of Providence, RI Did Not Properly Administer Its HOME Program
We audited the City of Providence RI’s HOME Investment Partnerships program based on an OIG risk assessment, which ranked the City as the highest risk HOME grantee in New England. The objective of the audit was to determine whether the City properly committed and disbursed HOME funds in accordance with Federal and U.S. Department of Housing and Urban Development (HUD) rules and regulations.
City officials did not properly administer their…
June 19, 2018
Report
#2018-BO-1003
The City of Margate, FL, Did Not Properly Administer Its Neighborhood Stabilization Program Grants 1 and 3 in Compliance With HUD Regulations
We audited the City of Margate’s Neighborhood Stabilization Program (NSP) grants 1 and 3 in accordance with our audit plan to improve the U.S. Department of Housing and Urban Development’s (HUD) execution of and accountability for grant funds. In addition, HUD requested that we review this auditee because a forensic investigation initiated by the City found issues with record keeping, misappropriation of funds, and overages regarding City…
May 28, 2018
Report
#2018-AT-1005
The City of Dallas, TX, HOME Investment Partnerships Program Was Not Always Administered in Accordance With Requirements
We audited the City of Dallas’ HOME Investment Partnerships program, specifically, its reconstruction program. A City auditor’s report, multiple news articles, and U.S. Department of Housing and Urban Development (HUD) monitoring reviews identified issues with the City’s Federal funds and record keeping. Our audit objective was to determine whether the City followed HOME regulations and its own policies and procedures when it…
May 07, 2018
Report
#2018-FW-1004
The City of Moreno Valley, CA, Did Not Administer Its Code Enforcement Program in Accordance with HUD Requirements
We audited the City of Moreno Valley’s Community Development Block Grant (CDBG) program, based on a referral from the Office of the Inspector General’s Los Angeles Office of Investigation, identifying the concerns of the Los Angeles Office of Community Planning and Development that the City did not properly charge salaries to the CDBG code enforcement program. The objective of our audit was to determine whether the City correctly…
April 26, 2018
Report
#2018-LA-1004
The North Carolina Department of Commerce, Raleigh, NC, Generally Administered Its Grant Program in Accordance With HUD Regulations
We audited the North Carolina Department of Commerce’s Small Cities Community Development Block Grant as part of the activities in our annual audit plan. Our audit objectives were to determine whether the Department of Commerce (1) awarded funds to local governments that met a CDBG national objective, (2) spent funds only for activities that were eligible and supported, and (3) included all methods of distribution in its action plan.
The…
April 15, 2018
Report
#2018-AT-1003
The City of South Gate, CA, Did Not Administer Its Community Development Block Grant Program in Accordance With HUD Requirements
We audited the City of South Gate’s Community Development Block Grant (CDBG) program. We selected the City based on our risk analysis of Los Angeles area grantees and prior monitoring concerns identified by the U.S. Department of Housing and Urban Development (HUD) with the City’s code enforcement activities. The objective of the audit was to determine whether the City administered its CDBG funds in accordance with HUD requirements…
March 28, 2018
Report
#2018-LA-1003
FHA Insured $1.9 Billion in Loans to Borrowers Barred by Federal Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Federal Housing Administration (FHA)-insured loans from calendar year 2016. Our audit objective was to determine whether FHA insured loans to borrowers with delinquent Federal debt or who were subject to Federal administrative offset for delinquent child support.FHA insured an estimated 9,507 loans worth $1.9 billion, which were not eligible…
March 25, 2018
Report
#2018-KC-0001
Final Civil Action – MetLife Home Loans, LLC, and a Borrower’s Son Settled Allegations of Failing to Comply with HUD’s Federal Housing Administration HECM Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), conducted a review of a Federal Housing Administration (FHA) home equity conversion mortgage (HECM) underwritten by MetLife Home Loans, LLC. MetLife is an FHA-approved mortgage lender with its principal place of business located in Irving, TX.
On June 9, 2017, HUD notified MetLife and the borrower’s son of their potential liability under the…
March 22, 2018
Memorandum
#2018-CF-1801
CitiMortgage, Inc., O’Fallon, MO, Improperly Filed for FHA-HAMP Partial Claims Before Completing the Loan Modifications and Reinstating the Loans
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited CitiMortgage’s processing of partial claims. Our audit objective was to determine whether CitiMortgage filed for partial claims only after completing the loan modifications and reinstating the loans.
CitiMortgage improperly filed for 66 partial claims before completing the loan modifications and reinstating the loans. The Federal Housing…
March 03, 2018
Report
#2018-KC-1001
HUD’s Use of Nonpayment Orders Adequately Prevented Claims on FHA Loans From Being Paid
We audited the U.S. Department of Housing and Urban Development’s (HUD) process for ensuring that nonpayment orders adequately prevented the payment of claims on Federal Housing Administration (FHA) loans. The audit was initiated in response to an Office of Inspector General preaudit analysis of HUD data, which determined that nonpayment orders may not always prevent claims from being paid. Our audit objective was to determine…
February 25, 2018
Report
#2018-LA-0001
The County of San Diego, San Diego, CA, Did Not Support Continuum of Care Match and Payroll Costs in Accordance With Requirements
We audited the County of San Diego’s Continuum of Care program funds received from the U.S. Department of Housing and Urban Development (HUD). We audited the County because HUD had not reviewed its Continuum of Care grant program in more than 10 years and as a spinoff of an audit of a County subgrantee, Mental Health Systems, Inc. (2017-LA-1003, issued June 2, 2017). Our audit objective was to determine whether the County…
February 21, 2018
Report
#2018-LA-1002