We audited Summit Construction and Environmental Services, LLC, because we received an anonymous complaint alleging that Summit Construction (1) did not perform lead-based paint evaluations in a timely manner, (2) did not produce adequate lead-based paint inspection reports in accordance with applicable requirements, and (3) showed favoritism toward certain contractors performing lead-paint inspections.  Our objective was to determine…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited HUD to ensure that public housing agencies (PHA) have access to information in the Federal Do Not Pay system. We performed this audit because the Housing Opportunity Through Modernization Act of 2016 requires HUD to ensure that PHAs have access to information contained in the Bureau of Fiscal Services’ Do Not Pay system established by the Improper…

We initiated our audit in accordance with our strategic goal to provide the U.S. Department of Housing and Urban Development (HUD) with services and products to address vulnerabilities, to provide opportunities for improvements, and to recognize positive outcomes.  The audit objective was to determine whether the HUD Office of Community Planning and Development (CPD) monitored and ensured that its Disaster Relief Appropriations Act, 2013,…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, has completed its annual risk assessment of HUD’s purchase cards as required by the Government Charge Card Abuse Prevention Act of 2012 (Public Law 112-194) and Office of Management and Budget Memorandum M-13-21.  Our objective was to identify and analyze risks of illegal, improper, or erroneous purchases and payments in HUD’s fiscal years 2017 and…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Federal Housing Administration (FHA) based on the results of another audit, which found that the lender improperly filed for partial claims before completing the loan modifications and reinstating the loans.  Our audit objective was to determine whether FHA improperly paid partial claims that did not reinstate the delinquent loans. We found…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Bank of America because it has released more than 47,000 Federal Housing Administration (FHA)-insured loans into the Distressed Asset Stabilization Program (DASP) note sales program.  Since its inception, DASP has facilitated the sale of more than 108,000 FHA loans, which means that Bank of America accounts for nearly half of the entire program…

We audited information system controls over the U.S. Department of Housing and Urban Development’s (HUD) computing environment.  This review was conducted as part of our audit of HUD’s financial statements for fiscal year 2018 under the Chief Financial Officers Act of 1990.  Our objective was to assess general controls over HUD’s computing environment for compliance with HUD information technology policies and Federal information…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ) and the U.S. Attorney’s Office for the Northern District of New York in a civil investigation of Gateway Funding Diversified Mortgage Services, LP, now known as Finance of America Mortgage, LLC (FAM).  Gateway was a Federal Housing Administration (FHA)-approved mortgage lender.  On May 31, 2015,…

We audited selected general and application controls over the Federal Housing Administration’s Computerized Homes Underwriting Management System as part of the internal control assessments required for the fiscal year 2018 financial statement audit under the Chief Financial Officer’s Act of 1990.  Our objective was to review the effectiveness of controls for compliance with HUD information technology policies and Federal information system…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ) and the U.S. Attorney’s Office for the Eastern and Western Districts of Washington in the civil investigation of Universal American Mortgage Company, LLC.  Our investigation was ongoing when a qui tam action was filed in the U.S. District Court for the Western District of Washington.  Universal…

The Federal Government may choose to outsource for products or services using contracts and contractors.  HUD-owned and contractor-supported products and services are core to achieving HUD’s mission.  In FY 2017, HUD awarded 2,338 contracts, modifications, and task orders valued at $3.9 billion.  Specifically, HUD awarded 1,598 contracts totaling $3.1 billion in ultimate contract value for FY 2017.  While 19 HUD offices…

We are required to audit the consolidated financial statements of the U.S. Department of Housingand Urban Development (HUD) annually in accordance with the Chief Financial Officers Act of1990 as amended. This report supplements our independent auditor’s report on the results of ouraudit of HUD’s principal financial statements for the fiscal years ending September 30, 2018 and2017 (restated), related to HUD’s internal controls and compliance…

In accordance with the Chief Financial Officers Act of 1990, as amended, we are required to annually audit the consolidated financial statements of the U.S. Department of Housing and Urban Development (HUD) and the stand-alone financial statements of the Federal Housing Administration and the Government National Mortgage Administration (Ginnie Mae). Our objective was to express an opinion on the fairness of HUD’s…

We audited the U.S. Department of Housing and Urban Development’s (HUD) use of funds for building improvements, managed by its Office of Administration, in response to a request from the U.S. House and Senate Committees on Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies.  HUD planned to use repurposed and transferred funds from fiscal years 2015 and 2016, totaling $18.3 million, for Office…

The Federal Information Security Modernization Act of 2014 (FISMA) directs Inspectors General to conduct an annual evaluation of the agency information security program.  FISMA, Department of Homeland Security (DHS), Office of Management and Budget (OMB) and National Institute of Standards and Technology (NIST) establish information technology (IT) security guidance and standards for Federal agencies. We conducted this evaluation to assess…

The U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) worked with HUD’s Office of Lender Activities and Program Compliance, Office of Single Family Housing, to resolve outstanding matters related to two September 2015 agreements with Fifth Third Bank (FTB) and its principal subsidiary, Fifth Third Bancorp, an Ohio-based bank holding company.  HUD failed to properly record required indemnifications in…