We reviewed NTFN, Inc., based on the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General’s (OIG) goal to protect the integrity of the Federal Housing Administration’s (FHA) housing insurance and guarantee programs.  We selected NTFN because its loan default rate was the second highest in the Dallas-Fort Worth metropolitan area from July 2012 through June 2014.  NTFN originated 3,046 FHA loans in the…

Because of concerns identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing, we performed a review of the Housing Authority of the City of Lockney.  HUD alleged that the Authority’s previous executive director had a conflict-of-interest and received ineligible payments.  Our objectives were to determine whether the Authority operated its public housing in accordance with HUD requirements and…

We audited the State of Rhode Island’s Neighborhood Stabilization Program (NSP) based on a risk assessment that considered the amount of funding, the U.S. Department of Housing and Urban Development’s (HUD) risk assessment, and HUD findings related to one of the State’s subrecipients.  Our overall audit objective was to determine whether the State properly administered the NSP and ensured that costs incurred were in accordance with HUD…

We completed a review of the Rhode Island Housing’s HOME Investment Partnerships Program based on an Office of Inspector General risk assessment of New England HOME recipients that considered the amount of funding provided and prior audit and monitoring findings.  Our audit objectives were to determine whether Rhode Island Housing officials awarded HOME funds to grantees in a reasonable and supported manner and whether HOME funds were…

In accordance with our regional plan to review public housing programs and because of a complaint filed with the Office of the Inspector General (OIG) and issues identified by new management, we performed a review of the Rotan Housing Authority (Authority).  The complainant and Authority management alleged that the Authority maintained its records in a disorderly fashion, lacked supporting documentation for rental income, had large rental…

In accordance with our annual audit plan to review public housing programs and because of an anonymous complaint and issues identified by the San Antonio Office of Public Housing, we reviewed the Housing Authority of the City of Taylor, Taylor, TX.  Our objectives were to determine whether the Authority operated its public housing and related grant programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD)…

We audited Cornerstone Home Lending, formerly known as Cornerstone Mortgage Company.  We selected Cornerstone based upon a high default rate at Cornerstone’s Branch 87 in 2007 through 2009.  Our audit objectives were to determine whether Cornerstone (1) complied with HUD and Federal Housing Administration (FHA) regulations when originating and underwriting FHA-insured mortgages and (2) implemented a quality control plan that met…

At the request of the Director of the U.S. Department of Housing and Urban Development’s (HUD) Houston, TX, Office of Multifamily Housing Programs, we conducted a review of Yale Court Apartments (project).  Our objective was to determine whether the project owner used the project funds in accordance with its regulatory agreement and HUD regulations. The former owner used more than $3.5 million of the project funds for ineligible and…

In accordance with our regional plan to review public housing programs, we reviewed the Beaumont Housing Authority, Beaumont, TX.  Our objective was to determine whether the Authority’s controls over tenant and unit eligibility were sufficient to ensure that it administered its low-rent public housing and Housing Choice Voucher programs in accordance with U.S. Department of Housing and Urban Development (HUD) regulations and guidance.…

In accordance with our regional plan to review public housing programs and as part of our overall risk strategy to review smaller housing authorities, we reviewed the Housing Authority of the City of Beeville, TX.  Our objective was to determine whether the Authority operated its public housing and related grant programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements.  However, we limited…

We audited the State of Texas’ Community Development Block Grant Disaster Recovery Program based on a hotline complaint, which alleged mismanagement of the Lower Rio Grande Valley Development Council’s Disaster Recovery housing program.  The complainant also made allegations concerning excessive home costs and ineligible homeowners.  Our audit objectives were to determine whether the State (1) ensured that the contractor limited the…

In accordance with our regional plan to review public housing programs and because of a complaint received by our office, we reviewed the Housing Authority of the City of Nixon, Nixon, TX.  Our objective was to determine whether the Authority operated its public housing and related grant programs in accordance with the U.S. Department of Housing and Urban Development’s (HUD) requirements.  Specifically, we wanted to determine whether…

In accordance with our regional plan to review public housing programs and because of weaknesses identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing, we reviewed the Malakoff Housing Authority, Malakoff, TX.  Our objective was to determine whether the Authority’s controls were sufficient to ensure that it administered its HUD Public Housing programs in accordance with regulations and guidance…

In accordance with our regional plan to review public housing programs and because of weaknesses identified by the U.S. Department of Housing and Urban Development’s (HUD) Office of Public Housing, we reviewed the City of Brackettville Housing Authority, Brackettville, TX.  Our objective was to determine whether the Authority operated its public housing and related grant programs in accordance with HUD requirements.  The Authority’s…

We completed an audit of the City of Eagle Pass Housing Authority’s (Authority) American Recovery and Reinvestment Act of 2009 (Recovery Act) grant activities. The Authority was selected based on the U.S. Department of Housing and Urban Development’s (HUD), Office of the Inspector General’s (OIG)  annual plan to conduct oversight of the Recovery Act funds provided to public housing agencies and our regional risk evaluation.  Our audit…

We audited the Harris County Housing Authority, Houston, TX, at the request of the U.S. Department of Housing and Urban Development’s (HUD) Fort Worth Office Director of Public and Indian Housing.  The request followed a series of news articles alleging mismanagement and extravagant spending at the Authority, the removal or replacement of various former managers and board of commissioners members, and concerns expressed by the new managers…

We conducted a limited review of Federal Housing Administration (FHA) loans underwritten by CTX Mortgage Company LLC. We selected the lender based on the results of an auditability survey, which determined that CTX Mortgage allowed prohibited restrictive covenants to be filed against Federal Housing Administration (FHA)-insured properties. The objective of our review was to determine the extent to which CTX Mortgage failed to prevent the…

We audited the Housing Authority of the City of El Paso because it met our oversight objectives for the American Recovery and Reinvestment Act of 2009, and because our risk assessment found the Authority had more than $1.7 million to be spent within 3 months of the expenditure deadline.  Our audit objectives were to determine whether the Authority properly (1) obligated and spent its formula Recovery Act grant funds, (2) obtained its…

We audited the Housing Authority of the City of El Paso because it met our oversight objectives for the American Recovery and Reinvestment Act of 2009, and because our risk assessment found the Authority had more than $1.7 million to be spent within 3 months of the expenditure deadline. Our audit objectives were to determine whether the Authority properly (1) obligated and spent its formula Recovery Act grant funds, (2) obtained its formula…

We audited the U. S. Department of Housing and Urban Development (HUD) Neighborhood Stabilization Program (NSP1) administered by the Texas Department of Housing and Community Affairs. We selected the Department based upon the large amount of NSP1 funding that it received, more than $101 million. Our objective was to determine whether the Department complied with NSP1 requirements for obligations, expenditures, program income, monitoring, and…