HUD Did Not Ensure That Lenders Verified That FHA-Insured Properties in Flint, MI, Had Safe Water
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of Federal Housing Administration (FHA)-insured loans in Flint, MI. We conducted the audit based on recent news reports that identified high levels of lead contamination and because HUD had insured loans on properties in Flint that closed after the City of Flint began using the Flint River as its water source in April 2014, including 144 loans with unpaid…
July 28, 2016
Report
#2016-PH-0003
HUD Did Not Ensure That All Costs for Ginnie Mae’s Contract With Burson-Marsteller Were Supported, Reasonable, and Necessary
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of the Government National Mortgage Association’s (Ginnie Mae) contract for financial industry and media marketing services with public relations and communications firm Burson-Marsteller. We initiated the audit after we became aware of potential issues regarding the amount of funds used for services, which may not have been reasonable or necessary. …
July 22, 2016
Report
#2016-PH-0002
The Muscogee (Creek) Nation, Okmulgee, OK, Did Not Always Comply With HUD Requirements
We audited the Muscogee (Creek) Nation’s use of U.S. Department of Housing and Urban Development (HUD) funds in accordance with the Office of Inspector General’s goal to ensure the integrity and soundness of HUD’s Public and Indian Housing programs and to follow up on weaknesses identified in other reviews. The audit objective was to determine whether the Nation complied with HUD requirements when it housed families and procured contracts…
July 07, 2016
Report
#2016-FW-1003
HUD Did Not Enforce and Sufficiently Revise Its Underwriting Requirements for Multifamily Accelerated Processing Loans
We audited the U.S. Department of Housing and Urban Development’s (HUD) multifamily accelerated processing (MAP) program administered by its Office of Multifamily Production. We initiated the audit under our annual audit plan. Our objectives were to determine whether (1) HUD adequately reviewed and approved loans underwritten by MAP-approved lenders for Federal Housing Administration (FHA) insurance and (2) the 2016 MAP Guide was…
May 19, 2016
Report
#2016-AT-0001
Fiscal Year 2015 Audit of HUD’s Compliance with the Improper Payments Elimination and Recovery Act
This report presents the results of our audit of the U.S. Department of Housing and Urban Development’s (HUD) fiscal year 2015 compliance with the Improper Payments Elimination and Recovery Act of 2010 (IPERA).
For the third consecutive fiscal year, we determined that HUD did not comply with IPERA. Out of the six requirements, In fiscal year 2015, HUD complied with four (compliance determinations a, c, d, and f) and did not comply…
May 12, 2016
Report
#2016-FO-0005
The District of Columbia Housing Authority, Washington, DC, Did Not Always Make Payments for Outside Legal Services in Compliance With Applicable Requirements
We conducted a review of the District of Columbia Housing Authority’s payments for outside legal services in conjunction with an ongoing internal audit of the U.S. Department of Housing and Urban Development’s (HUD) oversight of public housing agencies’ expenditures for outside legal services. Our review objective was to determine whether the Authority made payments for outside legal services in compliance with applicable requirements.
We…
April 03, 2016
Memorandum
#2016-PH-1801
HUD Did Not Effectively Negotiate, Execute, or Manage Its Agreements Under the Intergovernmental Personnel Act
Due to deficiencies found in prior reviews of two Intergovernmental Personnel Act (IPA or Act) assignments, we audited the U.S. Department of Housing and Urban Development’s (HUD) implementation and oversight of the IPA mobility program. The audit objectives were to determine whether (1) HUD’s use of IPA agreements met the purpose and intent of the IPA mobility program, (2) HUD’s policies and procedures related to IPA agreements were adequate…
March 29, 2016
Report
#2016-FW-0001
Departmentwide Approach Needed to Address HUD Contractor Employee Security Risks
Contractors comprise around half of HUD’s workforce. We reviewed progress HUD had made in addressing previously identified background investigation issues. Personnel Security Division (PSD) had reduced the backlog of suitability adjudication cases, but on average it took about four times longer than the Office of Personnel Management standard of 90 days to complete a case—resulting in several hundred contractor employees working at HUD without…
March 29, 2016
Report
#2015-OE-0008
FHA Approved Nonprofits Purchasing Real Estate-Owned Homes
The U.S. Department of Housing and Urban Development – Office of Inspector General audited HUD’s Federal Housing Administrations rules and requirements pertaining to nonprofits purchasing real estate-owned (REO) homes during the exclusive listing period. We initiated this review based on information found during an audit of a nonprofit that purchased homes during the exclusive listing period in memorandum 2015-DE-1801. Our objective…
March 22, 2016
Memorandum
#2016-KC-0801
HUD Lacked Adequate Oversight of Public Housing Agencies’ Compliance With Its Declaration of Trust Requirements
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of public housing agencies’ declarations of trust. The audit was part of the activities in our fiscal year 2015 annual audit plan. Our audit objective was to determine whether HUD had adequate oversight of public housing agencies’ compliance with its declaration of trust requirements.
HUD did not always ensure that public housing agencies maintained…
February 24, 2016
Report
#2016-CH-0001
Risk Based Enforcement Could Improve Program Effectiveness
Historically, HUD program managers have not wanted to enforce program requirements. That reluctance increases the risk that program funds will not provide maximum benefits to recipients and allows serious noncompliances to go unchecked. When it was created, the Departmental Enforcement Center had independent enforcement authority, but it lost that authority when it moved from the Deputy Secretary’s office to the Office of General Counsel (OGC…
February 11, 2016
Report
#2014-OE-0002