Finding Text
Finding reference number: #2025-001 Assistance Listing (federal award identification number and year): Mortgage Insurance for Rental Housing, Assistance Listing No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: V – Underpayment of Mortgage Restructuring Note (M2M Second Mortgage) Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $17,003 Was the sampling statistically valid: N/A Statement of condition of #2025-001: For the year ended December 31, 2025, the Corporation did not make the required second mortgage payment of $17,003. Criteria: As required under the Mortgage Restructuring Mortgage Note, a payment must be made within 10 days after the financial statement due date of March 31. Effect or potential effect: The Corporation is not in compliance with the Mortgage Restructuring Mortgage Note. Cause: Due to administrative delays, the 2024 audit report was not issued until September 24, 2025. Recommendation: The Corporation should make the required payment. Reporting response: Management concurs. On September 25, 2026, the Corporation made the required payment.