We audited late endorsement payment histories at Washington Mutual Bank (Washington Mutual), Seattle, Washington. We reported the results of our review in Audit Report 2005-SE-1006, issued on July 5, 2005. After the audit report was issued and the report recommendations were closed out in HUD’s Audit Resolution and Corrective Actions Tracking System (ARCATS), we recommended that HUD’s Office of General Counsel take additional sanctions against…

We audited the State of Colorado (State), Division of Housing's (Division) Community Development Block Grant (CDBG) program to determine whether the Division (1) awarded CDBG funds to ineligible projects and (2) properly identified and reported program income data. The Division used CDBG funds for ineligible and questionable projects. This condition occurred because management's main focus was on selecting projects that were for the…

At HUD's request, we audited the Housing Choice Voucher program of the Richland Housing Authority (Authority). HUD was concerned about the results of an audit of the Authority performed by the Washington State Auditor's Office. Our objective was to determine whether the Authority made ineligible purchases with program funds. We found that the Authority did not track its program expenses. Also, it charged more than $57,000 in…

We audited Renton Housing Authority (Authority), Renton, Washington. The review was initiated due to a hotline complaint from a Housing Choice Voucher program recipient. The complainant stated that the contract rent was unreasonable because it exceeded the rent for comparable unassisted units on the premises. The audit objective was to determine whether the complaint was valid. We also wanted to determine whether the Authority had controls in…

We audited A Plus Mortgage, Inc. (A Plus), to determine whether (1) the fees charged to Federal Housing Administration (FHA) borrowers by A Plus were appropriate under U.S. Department of Housing and Urban Development (HUD), FHA, and Real Estate Settlement Procedures Act (RESPA) regulations and (2) the loan officers originating FHA-insured loans were employees of A Plus. A Plus disregarded HUD FHA requirements and provisions of RESPA and engaged…

We audited the Housing Authority of the City of Brighton, Colorado (Authority) in response to a complaint alleging that it did not have an inventory control system and that it used poor procurement practices. Our audit objectives were to determine whether the Authority had an adequate inventory control system and whether it performed contracting activities in accordance with federal procurement requirements. The Authority did not have complete…

HUD-OIG audited the Housing Authority of the City of Colorado Springs, Colorado in response to an anonymous complaint alleging that it improperly awarded all contracts for rehabilitation services to the same bidder, did not properly maintain its waiting list, and inappropriately awarded new Section 8 housing choice vouchers. Our audit objectives were to determine whether the Authority followed federal procurement requirements and its own…

We audited the Tacoma Consortium HOME Investment Partnerships Program as a result of a risk assessment performed by HUD-OIG Region IX. Our objective was to determine whether the Consortium complied with HOME requirements, laws, and regulations with respect to the homeowner rehabilitation program and HUD procurement regulations. The Consortium generally administered HOME in accordance with HUD requirements but violated HOME regulations when it…

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that American Financial Network, Inc., a mortgage lender based in Brea, California, has agreed to pay $1,037,145 to resolve allegations that it improperly and fraudulently originated government-backed mortgage loans insured by the Federal Housing  Administration (FHA), a component of the U.S. Department of Housing and…

Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that American Financial Network, Inc., a mortgage lender based in Brea, California, has agreed to pay $1,037,145 to resolve allegations that it improperly and fraudulently originated government-backed mortgage loans insured by the Federal Housing  Administration (FHA), a component of the U.S. Department of Housing and…

DENVER – United States Attorney Jason R. Dunn announced today that Michael Scott Leslie, age 57, of Boulder, Colorado, pleaded guilty to federal bank fraud and aggravated identity theft charges.  Leslie appeared remotely on a $50,000 unsecured bond, which was continued at the hearing’s conclusion.  The Denver office of the FBI, and the Offices of the Inspector General for both the Department of Housing and Urban Development (HUD) and…