Posted by Cochise on May 13, 2008 at 13:19:13:
In Reply to: Stupid is as stupid does. FHA/HUD posted by Cochise on May 08, 2008 at 08:44:14:
TO: Charles E. Gardner, Director, Atlanta Homeownership Center
FROM: Dale L. Chouteau, District Inspector General for Audit, Midwest
SUBJECT: Golden Feather Realty Services, Inc.
Management and Marketing Contractor
Chicago, Illinois
We completed an audit of Atlanta Homeownership Center’s Management and Marketing
contractor, Golden Feather Realty Services, Inc., for Atlanta Area A-1. The audit was conducted
as part of a nationwide internal audit of the Federal Housing Administration’s Single Family
Property Disposition Program. The objectives were to determine whether Golden Feather
managed HUD’s single-family disposition program in accordance with HUD policies,
procedures, and regulations and with the terms and conditions of Golden Feather’s Management
& Marketing Contract.
The audit disclosed that Golden Feather did not provide sufficient oversight of appraiser work
assignments necessary to discourage the solicitation of a kickback. In addition, Golden Feather
did not execute or record land use restriction addendums necessary to restrict nonprofit
organizations from purchasing properties at a 30 percent discount and reselling the properties for
more than 110 percent of the cost. Furthermore, Golden Feather did not always maintain
properties, use approved appraisers to appraise HUD properties, and process appraisals and
disposition programs timely.
Within 60 days, please provide us, for each recommendation made in this report, a status report on:
(1) the corrective action taken; (2) the proposed corrective action and the date to be completed; or
(3) why action is considered unnecessary. Also, please provide us copies of any correspondence or
directives issued because of the audit.
Should you or your staff have any questions, please contact me at (312) 353-7832.