FAC Explorer

Audit 374600

FY End
2025-06-30
Total Expended
$1.33B
Findings
2
Programs
12
Organization: North Dakota Housing Finance Agency (ND)
Year: 2025 Accepted: 2025-12-15
Auditor: BRADY MARTZ

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1164794 2025-001 Material Weakness Yes N
1164795 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.117 MORTGAGE INSURANCE HOMES $172.22M Yes 1
14.U01 GINNIE MAE - MORTGAGE INSURANCE - HOMES $118.30M Yes 0
64.114 VETERANS HOUSING GUARANTEED AND INSURED LOANS $41.05M Yes 0
14.149 RENT SUPPLEMENTS RENTAL HOUSING FOR LOWER INCOME FAMILIES $14.72M Yes 0
64.U01 GINNIE MAE - VETERANS HOUSING GUARANTEED AND INSURED LOANS $9.71M Yes 0
14.275 HOUSING TRUST FUND $6.99M Yes 0
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.80M Yes 0
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $515,683 Yes 0
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $342,955 Yes 0
14.267 CONTINUUM OF CARE PROGRAM $100,633 Yes 0
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $32,384 Yes 0
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $6,056 Yes 0

Contacts

Name Title Type
LX46RGQ1KR13 Kayla Axtman Auditee
7013288073 Mindy Piatz Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule includes the federal award activity of North Dakota Housing Finance Agency under programs of the federal government for the year ended June 30, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of North Dakota Housing Finance Agency, it is not intended to and does not present the financial position, change in net position, or cash flows of North Dakota Housing Finance Agency.
The following is the balance of federal loan guarantees and insurance outstanding for the loan programs which appear on the schedule of expenditures of federal awards as of June 30, 2025. (SEE TABLE IN NOTES TO SEFA)

Finding Details

Finding 2025-001
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.