We audited the Federal Housing Administration (FHA)-insured loan process at MetLife Bank’s (lender) branch in Scottsdale, AZ, to determine whether the lender underwrote FHA-insured loans and implemented a quality control plan in accordance with U.S. Department of Housing and Urban Development (HUD) requirements. We selected the lender because it had an FHA default rate of 7.41 percent for loans underwritten in Arizona between April 1, 2009,…

HUD OIG audited the Housing Authority of the City of Fort Lauderdale’s (Authority’s) administration of its Public Housing Capital Fund grants under the American Recovery and Reinvestment Act of 2009. This was an OIG-initiated audit in accordance with OIG’s 2010-2015 strategic plan to contribute to the effective use of Federal funds allocated by the Recovery Act. Our audit objective was to determine whether the Authority administered its…

We audited Housing Our Communities’ (subrecipient) Neighborhood Stabilization Program (NSP1) subgrant from the City of Avondale. The audit was started primarily because the U.S. Department of Housing and Urban Development, Office of Inspector General’s (HUD OIG) audit plan includes objectives to review Housing and Economic Recovery Act grantees and because a previous HUD OIG audit of the City of Mesa found indications that the subrecipient did…

We audited the Sanford Housing Authority (Authority) to assess certain issues raised in a congressional referral. The referral alleged improper use or mismanagement of the Authority’s public housing, American Recovery and Reinvestment Act, and Section 8 Housing Choice Voucher program funds. The audit objectives were to determine whether the Authority properly used and accounted for public housing, Recovery Act, and Section 8 funds. We…

We audited Broward County’s Community Development Block Grant Recovery program funded under the American Recovery and Reinvestment Act of 2009. The audit objective was to determine whether the County administered its program in accordance with applicable U.S. Department of Housing and Urban Development and Recovery Act requirements. Specifically, the objective was to determine whether the County’s program (1) met the national objective(s), (2…

HUD OIG audited the Homelessness Prevention and Rapid Re-Housing Program administered by the City of Hialeah, Florida (City). Our objective was to determine whether the City administered its Program in accordance with U.S. Department of Housing and Urban Development (HUD) and American Recovery and Reinvestment Act of 2009 requirements. Specifically, we wanted to determine whether (1) expenditures were allowable, (2) Program participants were…

We audited Chicanos Por La Causa, Inc.’s (grantee) Neighborhood Stabilization Program 2 (NSP2) grant to determine whether the grantee administered its NSP2 grant in accordance with HUD’s program requirements. We conducted the audit as part of the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General’s (OIG) fiscal year 2011 annual audit plan and to support HUD OIG’s fiscal year 2011 strategic goal to contribute to…

HUD OIG performed an audit of Crossfire Financial Network, Inc., d/b/a CFN Mortgage Capital (Crossfire), a Federal Housing Administration (FHA) approved direct endorsement lender located in Miami, Florida. The review was performed based on the lender’s volume of loans underwritten and its default rate. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD)…

The U.S. Department of Housing and Urban Development (HUD) OIG audited the Neighborhood Stabilization Programs (NSP) administered by Palm Beach County (County). Our objective was to determine whether the County administration of its NSPs complied with federal requirements. Specifically, we determined whether (1) NSP1 activities met or will meet the low- and moderate-income national objective, (2) program income was properly accounted for, and…

HUD OIG audited the Neighborhood Stabilization Program (NSP) administered by the City of Miami Gardens, Florida (City). Our objective was to determine whether the City administered its program in accordance with applicable U.S. Department of Housing and Urban Development (HUD) requirements. Specifically, we wanted to determine whether (1) expenditures were allowable and (2) activities met the program’s national objectives. The City met the…

We reviewed Federal Housing Administration (FHA)-insured loan settlement documents from two branches of DHI Mortgage Company, LTD (DHI Mortgage), in Arizona. During a previous audit of loan origination by the same branches (audit report number 2009-LA-1018), there was information indicating that the Real Estate Settlement Procedures Act (Act) might have been violated; however, we were unable to report on the issue at the time. Our review…

We audited the City of Mesa’s (grantee) Neighborhood Stabilization Program (NSP1) grant to determine whether the grantee administered the grant in accordance with HUD’s program requirements. The audit was started primarily because the Office of Inspector General’s (OIG) audit plan includes objectives to review Housing and Economic Recovery Act grantees and because staff from the U.S. Department of Housing and Urban Development’s (HUD) Office…

HUD OIG conducted an inspection to address concerns of OIG senior management regarding the Housing Authority of the City of Fort Myers’ (HACFM) use of ARRA funds to construct a new administration building.  Specifically, we wanted to know whether:  (1) HACFM could use ARRA funds to construct a new administration building, and (2) did HACFM use ARRA funds to purchase furniture and equipment for the new administration building; if yes,…

HUD OIG performed an audit of Nationwide Home Loans, Inc. (Nationwide), a Federal Housing Administration (FHA) approved direct endorsement lender located in Miami, Florida. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements when (1) originating and underwriting loans and (2)…

HUD OIG audited the Community Development Block Grant program (program) administered by the City of Deerfield Beach, FL (City). The objective of the audit was to determine whether the City administered its program in accordance with applicable U.S. Department of Housing and Urban Development (HUD requirements. We selected the City for review because it had come under increased scrutiny when various newspaper articles and reviews highlighted…

HUD OIG conducted this audit based on a confidential complaint submitted through the U.S. Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) hotline. The complaint alleged several improprieties involving the County’s NSP and HOME programs. Our objectives were to determine whether the County (1) complied with requirements in the procurement, award, and execution of its NSP administrative contract and (2)…

We completed a review of the Retreat at Santa Rita Springs (community), a Federal Housing Administration (FHA)-insured multifamily project under Section 231 of the National Housing Act. Our audit was in response to a request for audit from Representative Gabrielle Giffords of the 8th District of Arizona. The owner defaulted on the $29.9 million U.S. Department of Housing and Urban Development (HUD)-insured mortgage in November 2009, the month…

HUD OIG performed an audit of Lendamerica Home Loans, Inc., a Federal Housing Administration approved direct endorsement lender located in Coral Gables, Florida. The review was performed based on the lender’s high default rates. The purpose of the audit was to determine whether the lender followed the U.S. Department of Housing and Urban Development’s (HUD) requirements for (1) originating and underwriting loans and (2) implementing its…

We audited the Homelessness Prevention and Rapid Re-Housing Program at the State of Arizona Housing Department (Department) because it was the largest single Homelessness Prevention and Rapid Re-Housing Program grant awarded within Arizona under the American Recovery and Reinvestment Act of 2009 (Recovery Act). Our objective was to determine whether the Department administered the grant in compliance with Recovery Act and other applicable…

HUD OIG audited the Neighborhood Stabilization Program (Program) administered by Broward County, Florida (County). The objective was to determine whether the County had the necessary controls to administer its Program in accordance with the Housing and Economic Recovery Act of 2008. Specifically, we evaluated whether the County had adequate (1) management controls to ensure that activities met Program objectives and (2) financial controls to…