EIN: 450371338
UEI: LX46RGQ1KR13
Audited by: BRADY MARTZ
Cognizant agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 15, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 15, 2026 (79 days ago).
What is a management decision? →AL 14.117 Federal Housing Commission Division Mortgage Insurance Criteria The Agency is required to return to the borrower any escrow surplus within 30 days of the loan payoff date. Condition Of the 25 loan payoffs tested, we noted one instance where the escrow surplus was not returned to the borrower within 30 days of the loan payoff. Cause The Agency updated loan tracking software in the current year. There was an issue with the ‘next due date’ on the payoff screen not updating once a payoff quote has been saved. Effect Borrowers are potentially not receiving escrow surpluses in a timely manner. Questioned Costs $0 Recommendation We recommend the Agency review its procedures to monitor any escrow surpluses that need to be returned after loans have been paid off. Views of Responsible Officials We acknowledge the finding that an escrow surplus related to a loan payoff was not fully released to the borrower within 30 days as required. The lapse occurred due to a system error that caused excess funds to be retained for PMI at payoff, as well as delays in reconciliation and manual processing workflows, and not due to intentional noncompliance. Management recognizes the importance of adhering to RESPA and internal policy requirements to ensure borrowers receive timely refunds and avoid compliance risk. Repeat Finding This is a new finding.
Show full finding ▾Hide full finding ▴AL 14.117 Federal Housing Commission Division Mortgage Insurance Criteria The Agency is required to return to the borrower any escrow surplus within 30 days of the loan payoff date. Condition Of the 25 loan payoffs tested, we noted one instance where the escrow surplus was not returned to the borrower within 30 days of the loan payoff. Cause The Agency updated loan tracking software in the current year. There was an issue with the ‘next due date’ on the payoff screen not updating once a payoff quote has been saved. Effect Borrowers are potentially not receiving escrow surpluses in a timely manner. Questioned Costs $0 Recommendation We recommend the Agency review its procedures to monitor any escrow surpluses that need to be returned after loans have been paid off. Views of Responsible Officials We acknowledge the finding that an escrow surplus related to a loan payoff was not fully released to the borrower within 30 days as required. The lapse occurred due to a system error that caused excess funds to be retained for PMI at payoff, as well as delays in reconciliation and manual processing workflows, and not due to intentional noncompliance. Management recognizes the importance of adhering to RESPA and internal policy requirements to ensure borrowers receive timely refunds and avoid compliance risk. Repeat Finding This is a new finding.
Corrective Action Plan: 1. System Remediation: Our servicing software payo logic has been corrected to ensure no excess escrow mortgage insurance funds are held back at payo. Fix date: August 12, 2025 2. Sta Training: Provide training to escrow and payo sta on the updated process and system changes, emphasizing regulatory requirements for escrow refund timeliness. 3. Monitoring: The existing control report used to identify escrow surpluses postpayo will now be run on a bi-monthly basis instead of monthly. 4. Accountability: The Servicing Coordinator will oversee corrective actions and provide periodic reporting to compliance and senior management. Target Completion Date: October 30, 2025 Responsible Party: Austin Ketterling, Servicing Coordinator
FAC accepted this audit on October 24, 2024 — management decision was due April 24, 2025.
FAC accepted this audit on October 31, 2023 — management decision was due May 1, 2024.
FAC accepted this audit on October 25, 2022 — management decision was due April 25, 2023.
FAC accepted this audit on October 12, 2021 — management decision was due April 12, 2022.
FAC accepted this audit on October 19, 2020 — management decision was due April 19, 2021.
FAC accepted this audit on November 13, 2019 — management decision was due May 13, 2020.
FAC accepted this audit on October 28, 2018 — management decision was due April 28, 2019.
FAC accepted this audit on November 8, 2017 — management decision was due May 8, 2018.
FAC accepted this audit on December 20, 2016 — management decision was due June 20, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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