We audited loanDepot.com to evaluate its quality control (QC) program for originating and underwriting Single Family Federal Housing Administration (FHA)-insured loans.  We selected loanDepot for review based on its loan volume and delinquency rate and because its rate of self-reporting loans to HUD when it identified fraud, material misrepresentations, and other material findings that it could not mitigate was below average for...

We performed an audit of CMG Mortgage, Inc., to evaluate its quality control (QC) program for originating and underwriting Single Family Federal Housing Administration (FHA)-insured loans.  We selected CMG for review based on its loan volume and delinquency rate and because its rate of self-reporting loans to HUD when it identified fraud, material misrepresentations, and other material findings that it could not mitigate was below...

HUD OIG is conducting an audit of HUD’s HECM Life Expectancy Set Asides within the Office of Housing. In 2015, HUD set a requirement for some HECM borrowers to maintain a Life Expectancy Set Aside to pay for future property taxes, insurance premiums, and flood insurance on behalf of the borrower. Our objective is to determine if HUD’s HECM Life Expectancy Set Aside calculations are meeting program goals. 

HUD OIG is auditing HUD's efforts to increase the supply of affordable housing. To increase the affordable housing supply, HUD's Office of Single Family expanded the exclusive listing period to 30 days to increase the time owner-occupants, HUD-approved nonprofits, and governmental entities can view and bid on properties without competing with investor purchasers. Our audit objective is to determine whether HUD met intended outcomes to...

HUD OIG is auditing the changing hazard insurance market on FHA borrowers and FHA. Our review will involve the review of hazard insurance cost data from January 1, 2018, through July 31, 2024, in Florida, Texas, Louisiana, and California overlayed with FEMA high-risk disaster maps and risk exposure associated with FHA insured homes in those states. Our objective is to assess the impact of the changing hazard insurance market on FHA...

We audited HUD’s management of its FHA appraiser roster to determine whether the roster was accurate and reliable.  We selected this review because a prior audit identified weaknesses related to roster oversight and because this topic aligns with HUD’s strategic goals related to promoting home ownership and strengthening its internal capacity, as well as increased interest in the appraisal process.  HUD’s FHA appraiser...

HUD OIG is auditing barriers impacting borrowers who were attempting to avoid FHA foreclosures. There were 85,000 FHA foreclosures started in 2022 following the conclusion of the COVID-19 foreclosure moratorium. Our audit objective is to assess the challenges facing FHA borrowers trying to avoid foreclosure.  

HUD OIG is auditing HUD’s monitoring of its Field Service Management (FSM) property preservation and protection services. Our review will involve the assessment of 80 monitoring sample items and cover the period of November 1, 2022, through October 31, 2023. The objective of our audit is to determine if HUD adequately monitored its Field Service Management contractors’ property preservation and protection services. 

We audited the Puerto Rico Housing Finance Authority’s (PRHFA) Homebuyer Assistance Program (HBA), which provides eligible applicants with closing costs and downpayment assistance for the purchase of a primary residence.  The U.S. Department of Housing and Urban Development (HUD) provided its grantee, the Puerto Rico Department of Housing (PRDOH), $495 million in Community Development Block Grant Disaster Recovery funds for HBA...

HUD OIG is auditing public housing authorities' controls over source of income discrimination. As of February 2023, 20 states have passed laws prohibiting discrimination against voucher holders by officially designing source of income as a protected class. The audit objective is to assess the extent to which public housing authorities have implemented controls to prevent and combat source of income discrimination. 

HUD OIG is auditing HUD’s Office of Housing Counseling. HUD’s 2022-2026 Strategic Plan identified housing counseling as one of the strategies it would employ to achieve its strategic objective to advance sustainable homeownership. Our objective is to assess HUD’s processes for achieving its goal through pre- and post-purchase homeownership counseling, including the assessment of its use of performance metrics and the collection and use...

We audited the U.S. Department of Housing and Urban Development (HUD), Office of Single Family Housing’s Federal Housing Administration (FHA) Resource Center’s handling of housing discrimination inquiries.  We initiated the audit to assist HUD with ensuring that the FHA Resource Center (1) provided accurate and complete information on potential housing discrimination to its customers and (2) ensured that instances of potential...

HUD OIG is auditing the Office of Asset Sales’ HUD-Held Vacant Loan Sales (HLVS) program, which is another disposition option for defaulted, formerly FHA single-family reverse mortgage loans owned and competitively auctioned by HUD to reduce losses and improve recoveries to FHA’s Mutual Mortgage Insurance Fund. The HLVS 2022-1 sale was held in December 2021 and included 1,605 settled loans with an unpaid loan balance of $398.6 million...

We audited the U.S. Department of Housing and Urban Development’s (HUD) temporary policy for endorsement of loans with COVID-19 forbearance activity because an analysis of data in HUD’s systems showed that there may have been loans that did not comply with the policy’s requirements.  The policy was one aspect of HUD’s broader emergency response to COVID-19, which also included an eviction moratorium and loan forbearance for...

HUD OIG is auditing a California-based mortgage lender that services FHA single-family loans. Servicers initiate foreclosure when defaulted borrowers cannot or will not resume and complete their mortgage payments. Our objective is to determine whether the servicer (1) established that borrowers were ineligible for loss mitigation assistance before commencing foreclosure, and (2) reviewed requests received during foreclosure before...

HUD OIG is auditing an Oklahoma-based mortgage lender that services FHA single-family loans. Servicers initiate foreclosure when defaulted borrowers cannot or will not resume and complete their mortgage payments. Our objective is to determine whether the servicer (1) established that borrowers were ineligible for loss mitigation assistance before commencing foreclosure, and (2) reviewed requests received during foreclosure before...

HUD OIG is conducting an audit of HUD's Office of Single Family Housing's oversight of the COVID-19 foreclosure moratorium. Using a moratorium beginning March 18, 2020 through July 31, 2021, Section 4022 of the CARES Act temporarily prohibited foreclosures, with the exception of vacant or abandoned homes. Our audit objective is to determine if servicers followed the requirements of the COVID-19 pandemic foreclosure moratorium.

HUD OIG is auditing the Office of Asset Sales' HUD-Held Vacant Loan Sale (HVLS) program, which is another disposition option for defaulted FHA notes HUD uses to reduce losses and improve recoveries for FHA’s Mutual Mortgage Insurance Fund. In the HLVS 2022-2 part 1 sale, 703 loans were awarded to qualified mission-driven entities, representing $105.1 million in unpaid principal balance. The audit objective is to assess the extent to...

HUD OIG is conducting a review of a California-based mortgage lender that originates and underwrites FHA single-family loans. Our objective is to evaluate the lender’s quality control program for originating and underwriting loans.

HUD OIG is conducting a review of a Missouri-based mortgage lender that originates and underwrites FHA single-family loans. Our objective is to evaluate the lender’s quality control program for originating and underwriting loans.