We audited JPMorgan Chase’s (Chase) Federal Housing Administration Home Affordable Modification Program (FHA-HAMP) stand-alone partial claims.  We selected Chase for review based on our analysis of risk factors of loan servicers that filed FHA-HAMP stand-alone partial claims and in accordance with our annual audit plan.  Our audit objective was to determine whether Chase complied with the FHA-HAMP stand-alone partial claim market rate…

We audited the Fort Bend County Community Development Department based on our risk analysis and as part of our annual audit plan to review Office of Community Planning and Development (CPD) funds.  The audit objective was to determine whether the Department (1) properly carried out its activities as shown in its submission to the U.S. Department of Housing and Urban Development (HUD) in an economical, efficient, and effective manner; (2)…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ), Washington, DC, and the U.S. Attorney’s Office for the Middle District of Florida in a civil investigation of Financial Freedom Acquisition, a division of CIT Bank, N.A.  Financial Freedom was originally owned by IndyMac Bank until its failure in 2008, when the Federal Deposit Insurance Corporation…

We audited the multifamily project-based Section 8 program at the Beverly Place Apartments.  We selected Beverly Place because we received a complaint of potential fraud, suggesting that the complex did not have appropriate controls to ensure tenant and unit eligibility.  Our objective was to determine whether the owner administered its project-based Section 8 program in accordance with U.S. Department of Housing and Urban Development…

We audited the Weslaco Housing Authority, Weslaco, TX, because of issues noted in the Authority’s travel while reviewing its independent public accountant’s audited financial statements.  Our audit objective was to determine whether the Authority complied with Federal, State, and local requirements for its travel payments. The Authority paid its commissioners and employees for ineligible, unreasonable, unnecessary, and unsupported travel…

In coordination with our Office of Investigations, we audited the Housing Authority of the City of Jasper, TX, because we received a complaint.  The complainant’s allegations included the executive director’s misuse of Authority vehicles and other issues.  Our audit objective was to determine whether the Authority operated its Public Housing programs in compliance with the U.S. Department of Housing and Urban Development’s (HUD)…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited the Section 8 housing assistance payments program of the New Horizons project in Kansas City, MO.  Our objective was to determine whether New Horizons properly verified tenants’ eligibility, requested assistance only for tenants living in the units, retained tenant files for the required period, and properly collected and deposited tenant rents…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), reviewed preforeclosure sales under the Federal Housing Administration (FHA) program in the St. Louis, MO, area.  We found that the purchaser of a property being sold in a preforeclosure sale entered into a consulting agreement with the realtor.  The agreement required that when the purchaser later sold the property, he would pay half of the…

The Houston Housing Authority, Houston, TX, Needs To Improve Its Procurement and Financial Operations and Its Housing Choice Voucher Program Subsidy Determinations We audited the Houston Housing Authority’s public housing and Housing Choice Voucher programs.  We selected the Authority for review in accordance with our audit plan and based upon risk analyses.  Our objectives were to determine whether the Authority (1) followed U.S.…

Based on the results of a prior audit, we reviewed Fort Worth Housing Solutions (FWHS) and transactions with its related entity QuadCo Management Solutions, LLC (QuadCo) of Fort Worth, TX.  Our objectives were to determine whether FWHS (1) properly managed its U.S. Department of Housing and Urban Development (HUD) funds, specifically whether it improperly loaned $1.6 million in HUD funds to QuadCo; (2) paid management fees within HUD’s…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Majestic Management, LLC, located in St. Louis, MO. Our objective was to determine whether Majestic Management charged only the appropriate fees in managing the projects, properly procured goods and services, and disbursed project funds only for eligible and supported expenses. Majestic Management improperly charged fees to its projects, did not…

We audited Park View Care Center’s owner based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Departmental Enforcement Center.  Our objective was to determine whether the property owner complied with the owner’s regulatory agreement and HUD requirements for the Section 232 program.  Park View’s owner did not comply with all the terms of its regulatory agreement and HUD requirements.  Specifically…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the City of Joplin, MO’s Community Development Block Grant Disaster Recovery (CDBG-DR) program because the City was awarded more than $45 million in CDBG-DR funds in April 2012 and received an additional $113 million in May 2013. We previously audited the City’s CDBG-DR program in 2013 and issued audit report 2014-KC- 1002. At that time, the City…

We audited the Harris County Community Services Department’s Community Development Block Grant (CDBG) program based on our risk analysis and as part of our annual audit plan to review community planning and development funds.  The audit objective was to determine whether the Department properly administered and adequately documented its CDBG program activities in accordance with U.S. Department of Housing and Urban Development (HUD)…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), reviewed preforeclosure sales under the Federal Housing Administration (FHA) program in the St. Louis, MO, area.  We found that a realtor purchased a property in January 2010 using a limited liability company he controlled while also acting as the seller’s agent.   On October 23, 2015, HUD served a complaint on the realtor, alleging…

We reviewed the Malakoff Housing Authority, Malakoff, TX. The review was part of a joint initiative between the HUD Office of Inspector General’s Office of Audit and Office of Investigation. We completed the review and referred the former executive director’s improper use of Authority funds by hiring and contracting with family members to HUD’s Office of Program Enforcement for action under the Program Civil Fraud Remedies Act of 1986. On May…

We reviewed the City of Brackettville Housing Authority, Brackettville, TX. The review was part of a joint initiative between the HUD Office of Inspector General’s (OIG) Office of Audit and Office of Investigation. We completed the review and referred the former executive director’s improper use of Authority funds for personal expenses to HUD’s Office of Program Enforcement for action under the Program Civil Fraud Remedies Act of 1986. On…

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited James B. Nutter & Company, a Federal Housing Administration (FHA) lender located in Kansas City, MO.  We selected James B. Nutter based on data analysis showing that the servicer might be completing foreclosures faster than the industry standard, which would suggest that it might not be fully using HUD’s loss mitigation tools.  Our…

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

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General, audited the State of Missouri’s Community Development Block Grant (CDBG) Disaster Recovery program because it was initially awarded more than $103 million in two CDBG Disaster Recovery grants for storms and flooding that occurred in 2008 and we had not previously audited the State’s activities regarding these funds.  Our audit objective was to…