Wage Determinations for FHA-Insured Multifamily Construction Projects
We audited the U.S. Department of Housing and Urban Development’s (HUD) implementation of the prevailing wage provisions of the Davis-Bacon Act for its Federal Housing Administration (FHA)-insured multifamily construction projects. We conducted the audit because we received an anonymous complaint alleging that HUD did not implement correct wage determinations for a $33 million multifamily construction project located in Oxnard, CA. …
October 06, 2020
Report
#2021-PH-0001
HUD Had Implemented Most of the Required Responsibilities Stated in the Geospatial Data Act of 2018
We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Policy Development and Research’s implementation of the responsibilities stated in the Geospatial Data Act of 2018 (The Act). We performed this review in response to a congressional mandate that HUD’s geospatial data be audited at least once every 2 years. The Act requires that we audit HUD’s collection, production, acquisition, maintenance,…
September 24, 2020
Report
#2020-LA-0002
Information System Controls Over the Ginnie Mae Financial Accounting System
We audited the effectiveness of selected business process application-level general controls and data management controls over the Government National Mortgage Association (Ginnie Mae) Financial Accounting System (GFAS) and its subledger database (SLDB) component as part of the internal control assessments required for the fiscal year 2019 financial statements audit under the Chief Financial Officer’s Act of 1990. We also assessed…
September 18, 2020
Report
#2020-DP-0001
Information System Controls Over the Integrated Pool Management System
We audited the general controls over the Integrated Pool Management System (IPMS) as part of the internal control assessments required for the fiscal year 2018 financial statements audit under the Chief Financial Officer’s Act of 1990. Our objective was to evaluate and assess internal controls over the safeguarding of data, security, and continued operations in the event of unexpected interruptions. Specifically, we examined the…
December 21, 2018
Report
#2019-DP-0001
Audit of the Government National Mortgage Association’s Financial Statements for Fiscal Year 2018 and 2017
This report presents the results of our audit of Ginnie Mae’s fiscal years 2018 and 2017 financial statements, including our report on Ginnie Mae’s internal control and test of compliance with selected provisions of laws and regulations applicable to Ginnie Mae. In fiscal year 2018, for the fifth consecutive year, we were unable to obtain sufficient, appropriate evidence to express an opinion on the fairness of the $3 billion (net of…
November 13, 2018
Report
#2019-FO-0001
Risk Assessment of HUD’s Grant Closeout Process
We completed a risk assessment of the U.S. Department of Housing and Urban Development’s (HUD) grant closeout process as required by the Grants Oversight and New Efficiency (GONE) Act of 2016, Public Law 114-117. Our objective was to determine whether an audit or review of HUD’s grant closeout process was warranted.
We found that a moderate risk was associated with HUD’s grant closeout process and recommend that a full audit be…
September 27, 2018
Memorandum
#2018-NY-0801
Final Civil Action: BSR Trust, LLC, Settled Allegations of Making False Claims Related to Section 8 Housing Assistance Payments
On April 17, 2018, the Office of Program Enforcement issued a letter stating that it had reached a resolution under a Program Fraud Civil Remedies Act of 1986[1] case regarding Summit Bradford Apartments located in Tulsa, OK, following its review. The Government alleged that the owner submitted 40 false claims under the Act.
The Office of Program Enforcement included with its letter the March 28, 2018, settlement agreement with BSR…
May 21, 2018
Memorandum
#2018-FW-1801
Information System Controls Over the Ginnie Mae Financial Accounting System
We audited general and application controls over the Ginnie Mae Financial Accounting System (GFAS) as part of the internal control assessments required for the fiscal year 2017 financial statements audit under the Chief Financial Officer’s Act of 1990. Our objective was to review internal controls over the security, integrity, confidentiality, and availability of the data maintained in GFAS. We also reviewed the functionality and…
December 14, 2017
Report
#2018-DP-0001
E-Discovery Management System’s Capacity To Meet Customer Demand for Electronic Data
HUD has a contract with Leidos Innovations Corporation for E-Discovery services using the E-Discovery Management System. The process for collecting electronically stored information (ESI) and delivering it to customers has two major subprocesses: (1) an initial ESI collection and (2) a keyword search to refine the initial collection results. OGC’s and Leidos’ collection of ESI does not meet customer demand because processing ESI…
December 05, 2017
Report
#2017-OE-0008
Audit of the Government National Mortgage Association’s Financial Statements for Fiscal Years 2017 and 2016 (Restated)
This report presents the results of our audit of Ginnie Mae’s fiscal years 2017 and 2016 (restated) financial statements, including our report on Ginnie Mae’s internal control and test of compliance with selected provisions of laws and regulations applicable to Ginnie Mae.
In fiscal year 2017, for the fourth consecutive year, we were unable to obtain sufficient, appropriate evidence to express an opinion on the fairness of the $3.6…
November 13, 2017
Report
#2018-FO-0002
Ginnie Mae Did Not Adequately Respond to Changes in Its Issuer Base
The U.S. Department of Housing and Urban Development, Office of Inspector General audited Ginnie Mae’s oversight of nonbanks due to the growth of nonbank issuers in the mortgage servicing industry. Our objective was to determine whether Ginnie Mae responded adequately to changes in its issuer base.
We found that Ginnie Mae did not adequately respond to changes in its issuer base. Specifically, it did not implement policies and…
September 21, 2017
Report
#2017-KC-0008
The Office of Residential Care Facilities’ Use of Real Estate Assessment Center Scores
Very low REAC scores are not prevalent across ORCF’s portfolio. The majority of RCFs that received a REAC score scored at least 80 on their last inspection, and more than three quarters scored at least 60. Despite the small percentage of RCFs that scored below 31, we noticed an overall decline in REAC inspection scores across ORCF’s portfolio from 2000 to 2016.
REAC has adopted an inspection process that applies uniformly to all…
September 15, 2017
Report
#2017-OE-0011
Final Civil Action Borrower Settled Allegations of Making False Statements to HUD for a Home Purchase Under the Federal Housing Administration Mortgage Insurance Program
We received a referral from the Quality Assurance Division of the U.S. Department of Housing and Urban Development’s (HUD) Philadelphia Homeownership Center concerning a borrower who allegedly made false statements to obtain Federal Housing Administration (FHA) mortgage insurance. The borrower provided false and conflicting employment and income information, which was used in originating and obtaining an FHA loan. Further, the…
June 28, 2017
Memorandum
#2017-PH-1802
Monitoring of Nonbank Issuers Presents Challenges for Ginnie Mae
This briefing paper highlights challenges the Government National Mortgage Association (Ginnie Mae) faces in monitoring nonbanks and outlines our past, current, and future efforts to help it address those challenges. We are highlighting these challenges so HUD leadership is aware of and can be better prepared to address them. OIG is focusing on Ginnie Mae’s capacity to monitor nonbanks with an ongoing audit.
March 13, 2017
Topic Brief
HUD’s Fiscal Years 2016 and 2015 (Restated) Consolidated Financial Statements Audit (Reissued)
In accordance with the Chief Financial Officers Act of 1990, as amended, we are required to annually audit the consolidated financial statements of the U.S. Department of Housing and Urban Development (HUD). HUD reissued its fiscal year 2016 and 2015 (Restated) consolidated financial statements due to pervasive material errors that were identified by us. Our objective was to express an opinion on the fairness of HUD’s consolidated…
February 28, 2017
Report
#2017-FO-0005
Final Civil Action Borrower Settled Alleged Violations of Home Equity Conversion Mortgage Program
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program. Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at a time. We referred…
January 05, 2017
Memorandum
#2017-PH-1801
Audit of Ginnie Mae’s Fiscal Years 2016 and 2015 (Restated) Financial Statements
This report presents the results of our audit of Ginnie Mae’s fiscal years 2016 and 2015 (restated) financial statements, including our report on Ginnie Mae’s internal control and test of compliance with selected provisions of laws and regulations applicable to Ginnie Mae.
For the third consecutive year, in fiscal year 2016, we were unable to obtain sufficient, appropriate evidence to express an opinion on the fairness of the $ 4.2…
November 13, 2016
Report
#2017-FO-0001
Ginnie Mae Improperly Allowed Uninsured Loans To Remain in Mortgage- Backed Securities Pools
The U.S. Department of Housing Urban Development (HUD), Office of Inspector General audited the Government National Mortgage Association’s (Ginnie Mae) process for identifying and removing uninsured single-family Federal Housing Administration loans from mortgage-backed securities (MBS) pools. Our audit objective was to determine whether loans remained in Ginnie Mae MBS pools for 1 year or longer without the required mortgage…
September 21, 2016
Report
#2016-KC-0002
Final Civil Action: Borrower Settled Alleged Violations of Home Equity Conversion Mortgage Program
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that 33 borrowers had more than 1 loan under the program. Having multiple loans violated program requirements because HUD requires borrowers to reside in the mortgaged residence as their principal residence and borrowers may not have more than one principal residence at a time. We referred…
September 09, 2016
Memorandum
#2016-PH-1802
Final Civil Action: Borrower Settled Alleged Violations of Home Equity Conversion Mortgage Program
We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of its Home Equity Conversion Mortgage (HECM) program and found that contrary to program residency requirements, 37 borrowers did not live in the property associated with the loan and were renting the property to participants in HUD’s Section 8 Housing Choice Voucher program. Renting the properties to Section 8 program participants violated program…
September 09, 2016
Memorandum
#2016-PH-1803