Audit Says Nevada Foreclosure Settlement Funds Needs Better Monitoring

by San Antonio Attorney

A legislative audit in Nevada said that although many victims of foreclosure received disbursement from settlement funds, there were policies and procedures that were not consistently followed.  The audit found that nonprofit organizations were overpaid with $56,195.

The audit recommends Nevada attorney general’s office must improve their method of monitoring the program that is intended to provide relief.

Some of the Nevada foreclosure crisis victims had received notices of foreclosure prior to the state’s participation in the multistate settlement in 2012.  Nevada was one of the 49 states that filed lawsuits against large banks.

The Home Again auditor said that the state attorney general’s office reimbursed money to those who did not have proper supporting documents.

The office is required to submit a counteractive plan of action by Feb. 19.

The amount that was overpaid to nonprofit organizations has been recovered.  The Home Again program has a foreclosure hotline, and counseling services provided by nonprofit groups.

According to the office of Attorney General Adam Laxalt, they have already started to resolve the issues cited by the audit.

The state of Nevada pursued and got $164 million in settlement funds from major banks for unfair mortgage lending methods from 2011 to 2014 fiscal years, the audit said.

Around $33 million were allocated to run the Home Again program.

According to the findings of the audit, the nonprofit organizations’ requests for reimbursements of expenses were not sufficient and no yearly fiscal audits were carried out, even though there are rules that require them.  There was only a partial audit performed for the period of 2½ years.

Nonprofit groups were overpaid with $21,006 starting in 2011 fiscal year until some in 2015.

Following the audit, additional overpayments were found, increasing the amount to $56,195.

Moreover, the performance data submitted to the Legislature was not consistently correct.  Some were notably overstated.

It was also discovered that $11 million of money for disbursement was not returned on time after the victims were not located.

 

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