Venta Financial Group, Inc., Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
Develop and implement policies and procedures to identify prohibited restrictions on conveyance to ensure that it does not originate FHA loans with prohibited restrictive covenants.
Venta Financial Group, Inc., Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
Provide training to its employees regarding HUD’s requirements related to prohibited restrictions on conveyance.
Venta Financial Group, Inc., Las Vegas, NV, Improperly Originated FHA-Insured Loans With Restrictive Covenants
Determine legal sufficiency and if legally sufficient, pursue civil and administrative remedies, civil money penalties, or both against Venta, its principals, or both for incorrectly certifying to the eligibility for FHA mortgage insurance or that due diligence was exercised during the origination of FHA loans.
MB Financial Bank, Rosemont, IL, Did Not Always Follow HUD's Underwriting Requirements but Generally Complied With Quality Control Requirements
We recommend that the Deputy Assistant Secretary for Single Family Housing require MB Financial to indemnify HUD against potential losses of $178,811 for the four loans that did not comply with underwriting requirements (appendix C). HUD provided us copies of the four executed indemnification agreements in August and September 2017. Therefore, upon issuance of this report, we will enter a management decision into HUD’s Audit Resolution and…
MB Financial Bank, Rosemont, IL, Did Not Always Follow HUD's Underwriting Requirements but Generally Complied With Quality Control Requirements
We recommend that the Deputy Assistant Secretary for Single Family Housing require MB Financial to provide training to its underwriters on HUD’s underwriting requirements for approving and rejecting loans.
MB Financial Bank, Rosemont, IL, Did Not Always Follow HUD's Underwriting Requirements but Generally Complied With Quality Control Requirements
We recommend that the Deputy Assistant Secretary for Single Family Housing require MB Financial to update its policies and procedures to ensure that its staff understands underwriting requirements and the requirement that loans be manually underwritten when a refer decision is received from automated underwriting systems or when a loan is downgraded to a manual underwrite.
MB Financial Bank, Rosemont, IL, Did Not Always Follow HUD's Underwriting Requirements but Generally Complied With Quality Control Requirements
We recommend that the Deputy Assistant Secretary for Single Family Housing require MB Financial to update its quality control plan to include the specific procedures to be used when reviewing rejected loan applications.
The Housing Authority of the City of Hartford, CT, Did Not Always Comply With Procurement Requirements
Support that $2,533,377 in costs were reasonable and allowable program expenses in accordance with requirements or repay from non-Federal funds the appropriate programs any amounts they cannot support.
The Housing Authority of the City of Hartford, CT, Did Not Always Comply With Procurement Requirements
Repay the appropriate programs from non-Federal funds the $1,524,604 in ineligible funds paid when costs exceeded contract terms.
The Housing Authority of the City of Hartford, CT, Did Not Always Comply With Procurement Requirements
Determine the appropriateness of the remaining balance of $1,242,154 on unsupported contracts to ensure costs were reasonable, reprocure the subject contracts, or reallocate the funds to the appropriate program.
The Housing Authority of the City of Hartford, CT, Did Not Always Comply With Procurement Requirements
Reprocure expired service contracts to ensure estimated balances of $375,526 are used on eligible contract.
The Housing Authority of the City of Hartford, CT, Did Not Always Comply With Procurement Requirements
Reprocure any service contracts necessary and ensure that the contracts are properly awarded in accordance with HUD requirements.
The Housing Authority of the City of Hartford, CT, Did Not Always Comply With Procurement Requirements
Strengthen and implement controls and procedures over procurement, including monitoring consultants, to ensure that procurement activities meet HUD requirements.
The Housing Authority of the City of Hartford, CT, Did Not Always Comply With Procurement Requirements
Establish and implement an effective system to ensure that payments do not exceed approved contract values.
The Housing Authority of the City of Tulsa, Tulsa, OK, Did Not Always Correctly Compute Housing Assistance Payments
We recommend that the Program Center Coordinator, Office of Public Housing, Oklahoma City, OK, require the Authority to support or repay $28,574 from non-Federal funds to its Section 8 program for unsupported payments based on questionable income calculations.
The Housing Authority of the City of Tulsa, Tulsa, OK, Did Not Always Correctly Compute Housing Assistance Payments
We recommend that the Program Center Coordinator, Office of Public Housing, Oklahoma City, OK, require the Authority to strengthen its compliance with requirements by implementing a quality control system that would require management to review a sample number of income calculations, ensure staff follow-up on income discrepancies and document their analysis.
The Housing Authority of the City of Tulsa, Tulsa, OK, Did Not Always Correctly Compute Housing Assistance Payments
We recommend that the Program Center Coordinator, Office of Public Housing, Oklahoma City, OK, require the Authority to implement policies and procedures to monitor the EIV income discrepancy reports each quarter to minimize subsidy payment errors.
HUD PIH's Required Conversion Program Was Not Adequately Implemented
We recommend that HUD’s Deputy Assistant Secretary for Public Housing Investments direct staff to determine whether the nine PHAs that were classified as troubled or physically substandard have public housing developments that are subject to the required conversion requirements to support whether potentially distressed projects should be converted to tenant-based rental assistance. If conversion is required, ensure that it is accomplished…
HUD PIH's Required Conversion Program Was Not Adequately Implemented
We recommend that HUD’s Deputy Assistant Secretary for Public Housing Investments direct staff to develop and implement policies and procedures with the Office of Field Operations regarding identification of potentially distressed projects and monitoring and enforcement of the required conversion program.
HUD Did Not Ensure That Lenders Properly Processed Voluntary Terminations of Insurance Coverage on FHA Loans and Disclosed All Implications of the Terminations to the Borrowers
Investigate the 14 loans with unpaid mortgage amounts totaling $3,035,819, and require the lenders to obtain the borrowers consent, reinstate the insurance coverage, or take other action as appropriate given the facts of each particular loan.