We audited Mortgage Services III, LLC, a Federal Housing Administration (FHA)-approved direct endorsement lender, as part of the activities in our fiscal year 2016 annual audit plan.  We selected Mortgage Services for review based on an analysis of data in the U.S. Department of Housing and Urban Development’s (HUD) Single Family Data Warehouse system  for single-family lenders with home offices in Region 5’s jurisdiction. …

We performed a survey of Evergreen Moneysource Mortgage Company, doing business as Evergreen Home Loans, regarding its Federal Housing Administration (FHA) loan origination process.  The review was part of our efforts to improve the integrity of single-family insurance programs.  We selected Evergreen’s Las Vegas branch because of its compare ratio.  Our audit objective was to determine whether Evergreen’s Las Vegas branch…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the Alton Housing Authority because it appeared to have flat rents set at a rate below 80 percent of the fair market rent in that area based on the information available in the Public and Indian Housing Information Center system.  Our objective was to determine whether the Authority complied with HUD’s flat rent requirements. The Authority did…

We audited the Reno-Sparks Indian Colony based on a complaint alleging the misuse of U.S. Department of Housing and Urban Development (HUD) funds due to improper procurement activities.  The objective of the audit was to determine the validity of the complaint and whether the Colony used its Indian Housing Block Grant and Indian Community Development Block Grant funds in accordance with HUD requirements. The complaint allegations had merit…

We audited EdgeAlliance, Inc.’s Continuum of Care program funds for The Daniel R. Ruscitti Phoenix House (project).  The audit was part of the activities in our fiscal year 2015 annual audit plan.  We selected the project for review based upon a citizen’s complaint.  Our objectives were to determine whether EdgeAlliance complied with Federal requirements in its (1) maintenance of financial management systems for program funds and…

We audited the State of Illinois’ Community Development Block Grant Disaster Recovery program.  The audit was part of the activities in our fiscal year 2015 annual audit plan.  We selected the State’s program based on a congressional request from the Honorable Mark Kirk to review the State’s awards of program funds under the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009 for three projects.…

We audited the U.S. Department of Housing and Urban Development’s (HUD) Resident Homeownership Program grant for Carmen-Marine Apartments (project).  The audit was part of the activities in our fiscal year 2015 annual audit plan.  We selected the project based on a request from HUD’s Chicago Multifamily Housing Hub.  Our objective was to determine whether the Carmen-Marine Cooperative and management agent operated the project in…

HUD OIG assisted the U.S. Attorney’s Office, Northern District of Illinois, in the investigation of Lakeview Sheridan, LLC, and Fremont Sheridan Properties.  Lakeview Sheridan is a multifamily property located in Chicago, IL, and Fremont Sheridan was the management company for Lakeview Sheridan.  Under section 223(f) of the National Housing Act, HUD insured the mortgage on Lakeview Sheridan in May 2006 through its Federal Housing…

We conducted a review of the Chicago 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 found that…

We audited the Chicago Housing Authority’s Moving to Work Housing Choice Voucher program as part of the activities in our fiscal year 2014 annual audit plan.  We selected the Authority based on a request from Congressman Aaron Schock and recent media attention regarding the Authority’s exception payment standards.  Our objective was to determine whether the Authority complied with its Moving to Work agreement, the U.S. Department of…

We audited the City of Chicago’s HOME Investment Partnerships Program.  We selected the City’s Program based upon our analysis of risk factors related to Program grantees in Region 5’s jurisdiction.  Our objectives were to determine whether the City complied with HUD’s requirements regarding (1) leases between rental new construction projects’ owners and households, (2) use and reporting of Program income, and (3) monitoring of…

We audited the Moline Housing Authority’s Section 8 program as part of the activities in our fiscal year 2013 annual audit plan.  We selected the Authority based on a citizen’s complaint to our office.  Our objective was to determine whether the Authority administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and its own requirements. The Authority did not always comply with HUD’s…

We audited the Southern Nevada Regional Housing Authority’s use of U.S. Department of Housing and Urban Development (HUD) public housing operating funds.  We audited the Authority based on a complaint alleging that the Authority (1) failed to competently oversee the Federal dollars entrusted to it and (2) did not have inventory controls in place to prevent the fraudulent use of supplies.  Our audit objective was to determine whether…

We audited Marina Village Apartments as a result of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) internal audit of HUD’s servicing of multifamily HUD-held mortgages and a risk analysis.  The objectives were to determine whether project funds were used in compliance with the regulatory agreement and HUD requirements and whether the project operated in compliance with its use agreement. The…

We audited the Federal Housing Administration (FHA)-insured loan process at All Western Mortgage’s Las Vegas, NV, home office as part of our efforts to improve the integrity of the single-family insurance programs. We selected All Western Mortgage because it is one of the top 10 originators in Nevada and the U.S. Department of Housing and Urban Development’s (HUD) Quality Assurance Division had not performed a review since 2005. The…

We audited the Southern Nevada Regional Housing Authority’s American Recovery and Reinvestment Act Public Housing Capital Fund grants as part of our objective to review funds provided under the American Recovery and Reinvestment Act of 2009. We selected the Authority because it is a newly formed entity, created January 1, 2010, and the Authority and the entities that formed it received more than $21 million in Recovery Act Capital Fund grants…

In conjunction with our external audit of Innotion Enterprises, Inc. (Audit Report #2012-LA-1010), we reviewed termite inspection passthrough costs that it submitted to the U.S. Department of Housing and Urban Development (HUD) for payment as part of its real estate-owned (REO) Management and Marketing III (M&M III) program field service manager contract. We selected Innotion’s Las Vegas, NV, branch based on the size and scope of its…

We audited the U.S. Department of Housing and Urban Development (HUD) real estate-owned (REO) Management and Marketing (M&M) III program at Innotion Enterprises, Inc., to determine whether Innotion performed property preservation and protection services according to contract requirements. The review was part of our efforts to improve the integrity of the single-family insurance programs. We selected Innotion’s Las Vegas, NV, branch based…

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the Aurora Housing Authority’s Recovery Act formula grant. The audit was part of the activities in our fiscal year 2012 annual audit plan. We selected the Authority based upon our analysis of risk factors related to the housing agencies in Region V’s (see footnote) jurisdiction. Our objective was to determine whether the Authority administered its grant…

The U.S. Department of Housing and Urban Development, Office of Inspector General audited the East St. Louis Housing Authority’s American Recovery and Reinvestment Act of 2009 Public Housing Capital Fund program. Our audit objective was to determine whether the Authority (1) complied with applicable procurement requirements and properly managed its Recovery Act contracts, (2) properly drew down and expended funds for eligible activities, and (3…