Towne Mortgage Company, Troy, MI, Generally Implemented Its Loss Mitigation Program in Accordance With HUD’s Requirements
We audited Towne Mortgage Company, a Federal Housing Administration (FHA) nonsupervised lender, as part of the activities in our fiscal year 2018 annual audit plan. We selected Towne Mortgage based on our analysis of risk factors for single-family servicing lenders in Region 5’s jurisdiction.[1] Our audit objective was to determine whether Towne Mortgage properly implemented its Loss Mitigation program for FHA-insured loans in...
Septiembre 18, 2018
Report
#2018-CH-1005
The Grand Rapids Housing Commission, Grand Rapids, MI, Did Not Always Correctly Calculate and Pay Housing Assistance for Units Converted Under the Rental Assistance Demonstration
We audited the Grand Rapids Housing Commission’s Rental Assistance Demonstration program (RAD) based on the activities included in our 2017 annual audit plan and our analysis of the housing agencies participating in RAD in Region 5’s jurisdiction (States of Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin). Our audit objective was to determine whether the Commission correctly calculated housing assistance payments for the units...
Junio 11, 2018
Report
#2018-CH-1001
Travelers Aid Society of Metropolitan Detroit, Detroit, MI, Did Not Always Administer Its Continuum of Care Program in Accordance With Federal Regulations
We audited Travelers Aid Society of Metropolitan Detroit’s Continuum of Care program. The audit was part of the activities in our fiscal year 2017 annual audit plan. We selected Travelers Aid’s program based on a request from the Director of the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Community Planning and Development and the results of HUD’s monitoring review of one of Travelers Aid’s fiscal year...
Septiembre 28, 2017
Report
#2017-CH-1008
The City of Chattanooga, TN, Did Not Always Administer Its ESG Program in Accordance With HUD’s Requirements
We audited the City of Chattanooga’s Emergency Solutions Grants (ESG) program. We selected the City for review in accordance with our annual audit plan. Our audit objective was to determine whether the City administered its ESG program in accordance with HUD’s requirements.
The City did not always administer its ESG program in accordance with HUD’s requirements. Specifically, it did not ensure that program expenditures were...
Septiembre 28, 2017
Report
#2017-AT-1013
Final Civil Action – United Shore Financial Services, LLC, Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, Eastern District of Michigan, in the civil investigation of United Shore Financial Services, LLC. United Shore is a Federal Housing Administration (FHA)-approved mortgage lender, with its principal place of business located in Troy, MI.
United Shore became...
Marzo 29, 2017
Memorandum
#2017-CF-1803
The Port Huron Housing Commission, Port Huron, MI, Did Not Properly Implement Asset Management
We audited the Port Huron Housing Commission’s public housing program as part of the activities in our fiscal year 2016 annual audit plan. We selected the Commission based on our analysis of the risk factors relating to public housing agencies in Region 5’s 1 jurisdiction. Our objective was to determine whether the Commission administered its program in accordance with the U.S. Department of Housing and Urban Development’s (HUD) and...
Enero 23, 2017
Report
#2017-CH-1001
Shelby County, TN, Administered Its Community Development Block Grant Disaster Recovery Program Funds for Infrastructure in Accordance With HUD Requirements
We audited Shelby County’s Community Development Block Grant Disaster Recovery (CDBG-DR) grant. We selected the County for review in accordance with our annual audit plan and because the County received more than $7.4 million in funding to recover from severe storms, tornadoes, straight-line winds, and flooding that occurred in April 2011. Our audit objective was to determine whether the County ensured that (1) funds were spent only...
Enero 17, 2017
Report
#2017-AT-1002
Franklin American Mortgage Company Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, District of Colorado, in the civil investigation of Franklin American Mortgage Company. Franklin American has its principal place of business in Franklin, TN. Franklin American became an FHA-approved direct endorsement lender in 1995. As a direct...
Septiembre 08, 2016
Memorandum
#2016-CF-1801
The Lansing Housing Commission, Lansing, MI, Did Not Always Comply With HUD’s Requirements and Its Own Policies Regarding the Administration of Its Section 8 Housing Choice Voucher Program
We audited the Lansing Housing Commission’s Section 8 Housing Choice Voucher program based on our analysis of risk factors related to the public housing agencies in Region 5’s jurisdiction and the activities included in our 2015 annual audit plan. Our audit objectives were to determine whether the Commission (1) appropriately calculated housing assistance payments, (2) maintained eligibility documentation required to support the...
Diciembre 15, 2015
Report
#2016-CH-1002
Final Civil Action: GTL Investments, Inc., Doing Business as John Adams Mortgage Company Settled Allegations of Failing To Comply With HUD’s FHA Loan Requirements
The U.S. Department of Housing and Urban Development’s (HUD) Office of Inspector General (OIG), in coordination with the U.S. Attorney’s Office for the Eastern District of Michigan, conducted a review of GTL Investments, Inc., doing business as John Adams Mortgage Company regarding its originations, underwriting, quality control, and endorsement of Federal Housing Administration (FHA) loans.
The U.S. Government contended that it had certain...
Septiembre 30, 2015
Memorandum
#2015-CH-1801
Taliafaro, Inc., a Multifamily Housing Management Agent, Did Not Always Comply With HUD’ Requirements or Its Own Policies and Procedures in the Disbursement of Project Funds and Collection of Its Fees
We reviewed the disbursement of project funds for seven of the Sections 202 and 811 supportive housing projects for the elderly and persons with disabilities managed by Taliafaro, Inc. We initiated the audit under the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s annual audit plan. Our objective was to determine whether Taliafaro used project funds appropriately and operated multifamily...
Septiembre 30, 2015
Report
#2015-AT-1012
First Tennessee, N.A. Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) assisted the U.S. Department of Justice, Washington, DC, and the U.S. Attorney’s Office, Northern District of Georgia, in conducting a review of First Tennessee has its principal place of business in Memphis, TN and is a wholly owned subsidiary of First Horizon Financial Corporation. First Tennessee became an FHA-approved direct endorsement...
Septiembre 29, 2015
Memorandum
#2015-AT-1801
Member First Mortgage, LLC, Grand Rapids, MI, Generally Implemented Its Loss Mitigation and Quality Control Programs in Accordance With HUD’s Requirements
We audited Member First Mortgage, Limited Liability Company, a Federal Housing Administration (FHA) nonsupervised servicer as part of the activities in our fiscal year 2015 annual audit plan. We selected Member First based upon our analysis of risk factors for single-family servicing lenders in Region 5’s jurisdiction. Our audit objectives were to determine whether (1) Member First complied with the U.S. Department of Housing...
Septiembre 10, 2015
Report
#2015-CH-1005
The Detroit Housing Commission, Detroit, MI, Did Not Always Manage Its Program Projects in Accordance With HUD’s Requirements
We audited the Detroit Housing Commission’s Section 8 Moderate Rehabilitation Program as part of the activities in our fiscal year 2015 annual audit plan. We selected the Commission based upon a citizen’s complaint alleging mismanagement in the administration of the Commission’s former program projects, Colony Arms and Fisher Arms Apartments. Our audit objectives were to determine whether the Commission appropriately (1) maintained...
Agosto 26, 2015
Report
#2015-CH-1002
Prudential Huntoon Paige Associates, LTD, Did Not Underwrite and Process a $22 Million Loan in Accordance With HUD Requirements
We audited Prudential Huntoon Paige Associates, LTD’s underwriting of a $22.8 million mortgage loan to refinance Lafayette Towers Apartments, a 584-unit highrise multifamily project in Detroit, MI. We initiated the review based on the early default, assignment, and significant amount of the project. Our objective was to determine whether Prudential underwrote and processed the loan for Lafayette Towers according to the U.S....
Agosto 14, 2015
Report
#2015-AT-1007
Peoples Home Equity, Inc., Brentwood, TN, Did Not Follow HUD Requirements in Approving FHA Loans and Implementing Its Quality Control Program
We audited Peoples Home Equity, Inc.(Peoples), a Federal Housing Administration (FHA) approved nonsupervised direct endorsement lender located in Brentwood, TN. We selected Peoples based on its high default rates. The audit was part of our annual audit plan to review single family programs and lenders. Our audit objectives were to determine whether Peoples complied with HUD requirements when it originated and underwrote FHA...
Septiembre 30, 2014
Report
#2014-AT-1013
The Memphis Housing Authority, Memphis, TN, Did Not Always Ensure That Its Housing Choice Voucher Program Units Met HUD’s Housing Quality Standards
We audited the Memphis, TN, Housing Authority’s Housing Choice Voucher program as part of the activities in our fiscal year 2014 audit plan. We selected the Authority because it had a large program, receiving about $40 million in yearly funding, and was part of the OIG’s annual audit plan. Our objective was to determine whether the Authority’s inspection process adequately ensured that its units were in material compliance with...
Septiembre 30, 2014
Report
#2014-AT-1014
The Owner and Former Management Agents Lacked Adequate Controls Over the Operation of Lake Village of Fairlane Apartments, Dearborn, MI
We audited Lake Village of Fairlane Apartments as part of the activities in our fiscal year 2014 annual audit plan. We selected the project based on a referral from the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Multifamily Housing Programs. Our objective was to determine whether the project’s owner and former management agents operated the project in accordance with HUD’s requirements and the...
Septiembre 30, 2014
Report
#2014-CH-1012
The Owner and Former Management Agents Lacked Adequate Controls Over the Operation of Lake Village of Auburn Hills, Auburn Hills, MI
We audited the Lake Village of Auburn Hills multifamily project as part of the activities in our fiscal year 2014 annual audit plan. We selected the project based on a request from the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Multifamily Housing. Our objective was to determine whether the project’s owner and former management agents operated the project in accordance with the regulatory agreement...
Septiembre 29, 2014
Report
#2014-CH-1010
Improvements Are Needed Over Environmental Reviews of Public Housing and Recovery Act Funds in the Detroit Office
We audited the U.S. Department of Housing and Urban Development’s (HUD) Detroit Office of Public Housing as part of a nationwide audit of HUD’s oversight of environmental reviews. We selected the Detroit Office based on our risk assessment. Our audit objectives were to determine whether the Detroit Office’s oversight of public housing environmental reviews within its jurisdiction ensured that (1) the responsible entities performed...
Septiembre 24, 2014
Report
#2014-FW-0005