We completed a review of Clark County’s (grantee) Neighborhood Stabilization Program (Program). The grantee includes Clark County and the City of North Las Vegas. We performed the review because Housing and Economic Recovery Act of 2008 (Act) reviews are part of the OIG’s audit plan, and the Program was identified as high risk. In addition, the grantee was awarded more than $29.6 million in Program funding. Our objectives were to determine…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited National Bank of Kansas City (National Bank). Our audit objectives were to determine whether National Bank followed Federal Housing Administration (FHA) requirements for (1) borrower eligibility and creditworthiness and property eligibility when underwriting loans and (2) implementing a quality control program. National Bank did not follow HUD…

As part of the Office of Inspector General’s commitment to ensure the proper use of America Recovery and Reinvestment Act and Housing and Economic Recovery Act funds, we assessed the City of Oklahoma City’s capacity and risks in three areas: internal controls, financial operations, and procurement. Our review did not disclose any reportable conditions or control deficiencies.

We audited the Sacramento Housing Redevelopment Agency (Agency) as a result of a hotline complaint, which alleged violations of Neighborhood Stabilization Program (program) funds provided through the Housing and Economic Recovery Act of 2008. Our objective was to determine whether the alleged violations had merit. The complaint alleged several instances where the Agency did not follow program rules and regulations, including but not limited to…

HUD OIG performed an audit of Lendamerica Home Loans, Inc., a Federal Housing Administration approved direct endorsement lender located in Coral Gables, Florida. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements for (1) originating and underwriting loans and (2) implementing its…

HUD OIG performed an audit of Lendamerica Home Loans, Inc., a Federal Housing Administration approved direct endorsement lender located in Coral Gables, Florida. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements for (1) originating and underwriting loans and (2) implementing its…

We audited Sasha Bruce Youthwork, Incorporated (Youthwork, Inc.) to determine whether it used its Youthbuild and Supportive Housing program grant funds in accordance with U.S. Department of Housing and Urban Development (HUD) regulations and its grant agreements. We found that Youthwork, Inc., did not support the eligibility of more than $1.9 million in expenditures. Youthwork, Inc., failed to maintain records identifying the source and…

We audited the Homelessness Prevention and Rapid Re-Housing Program at the State of Arizona Housing Department (Department) because it was the largest single Homelessness Prevention and Rapid Re-Housing Program grant awarded within Arizona under the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objective was to determine whether the Department administered the grant in compliance with Recovery Act and other applicable…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited The Other Place, Inc.’s (The Other Place) use of the American Recovery and Reinvestment Act of 2009’s (Act) Homelessness Prevention and Rapid Re-Housing Program (program) funds. The Other Place was selected for audit based upon a citizen’s complaint to the Recovery Accountability and Transparency Board that was forwarded to our office. The…

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development’s (CPD) risk assessment process. We initiated the review as part of the activities in our fiscal year 2010 annual audit plan. Our objective was to determine whether CPD had established and properly implemented a risk assessment process that used appropriate measures to determine risk and identify grantees for monitoring. We found…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited HUD’s Office of Affordable Housing Programs’ (Office) oversight of resale and recapture provisions for HOME Investment Partnerships Program (Program)-assisted homeownership projects (project). The audit was part of the activities in our fiscal year 2009 annual audit plan to contribute to improving HUD’s execution of and accountability for its fiscal…

The U.S. Department of Housing and Urban Development's Office of Inspector General reviewed the City of Saginaw’s (City) Community Development Block Grant (Block Grant) program under the American Recovery and Reinvestment Act of 2009 (Act). The review was part of the activities in our fiscal year 2010 annual audit plan. We selected the City based upon the results of our prior audit of the City’s Block Grant-funded demolition activities. Our…

We audited Infinity Home Mortgage Company, Inc. (Infinity Home Mortgage), a nonsupervised lender approved to originate Federal Housing Administration (FHA) single-family mortgage loans. We selected Infinity Home Mortgage because its default rate for the State of Pennsylvania was significantly higher than the average default rate for the State. Our objective was to determine whether Infinity Home Mortgage complied with U.S. Department of Housing…

HUD OIG audited the Neighborhood Stabilization Program (Program) administered by Broward County, Florida (County). The objective was to determine whether the County had the necessary controls to administer its Program in accordance with the Housing and Economic Recovery Act of 2008. Specifically, we evaluated whether the County had adequate (1) management controls to ensure that activities met Program objectives and (2) financial controls to…

The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General audited HUD’s Office of Block Grant Assistance’s (Office) controls over special conditions in Neighborhood Stabilization Program grant agreements under Title III of the Housing and Economic Recovery Act of 2008 (Act) as amended. The audit was part of the activities in our fiscal year 2010 annual audit plan. Our objective was to determine whether HUD’s Office…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the City of East St. Louis, Illinois’ (City) Community Development Block Grant (Block Grant) program. Our objectives were to determine whether the City properly expended Block Grant funds for salaries and building expenses and followed proper procurement processes while awarding significant administration contracts. The City did not properly…

We audited Somerset Investors Corporation (Somerset), dba Somerset Mortgage Bankers, a Federal Housing Administration (FHA)-approved direct endorsement lender located in Melville, NY. The audit objectives were to determine whether Somerset (1) originated FHA-insured refinanced loans in accordance with the requirements of the U.S. Department of Housing and Urban Development (HUD)/FHA and (2) conducted quality control reviews that complied with…

We audited Federal Housing Administration (FHA)-insured loan processes at two DHI Mortgage Company, LTD (DHI Mortgage), branches in Scottsdale, AZ, to determine whether DHI Mortgage originated, approved, and closed FHA-insured single-family loans in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We recently conducted an audit of DHI Mortgage’s Tucson and Scottsdale branches and identified significant…

We reviewed the U.S. Department of Housing and Urban Development’s (HUD) Office of Community Planning and Development’s (CPD) risk assessment process. We initiated the review as part of the activities in our fiscal year 2010 annual audit plan. Our objective was to determine whether CPD had established and properly implemented a risk assessment process that used appropriate measures to determine risk and identify grantees for monitoring. We found…

We completed a capacity review of the City of Los Angeles’ Housing Department’s (City) Neighborhood Stabilization Program (Program). We performed the review because Housing and Economic Recovery Act of 2008 (HERA) reviews are part of our annual audit plan and the program was identified as high risk. We previously audited several different aspects of the City’s HOME Investment Partnerships program, all of which disclosed significant monitoring…