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2014-KC-0002-002-A
Status
Abierta
Date Issued
Julio 02, 2014
Update CAIVRS’ selection rules to report delinquent Federal debt beyond the 3-year claim period or obtain an exemption from the Secretary of the Treasury to exempt FHA loans after 3 years.
OIG Component Office
Audit
Program Office
Housing
Questioned Costs
$0.00
Better Funds Use
$0.00
Prioridad
No
Sensitive
No

Related Recommendations

Key Details
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  Open
  Closed
Funds Put to Better Use
Funds Put to Better Use

Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

Questioned Costs
Questioned Costs

Recommendations with questioned costs identify costs: (A] resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B] that are not supported by adequate documentation (also known as an unsupported cost]; or (C] that appear unnecessary or unreasonable.

Sensitive
Sensitive

Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.

Priority
Priority

We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

Housing

  • Summary

    Document the selection rules used for feeding data to CAIVRS to explain in detail the flow of information from HUD’s systems.

  • 2014-KC-0002-001-B
    $9,501,619.00
    Summary

    Update selection rules for CAIVRS to provide for complete reporting of all ineligible borrowers to put $9.5 million to better use.


    Status

    In 2020, HUD suspended reporting delinquencies and defaults to the Credit Alert Verification Reporting System (CAIVRS) because these debts are owed to the lender and are not delinquent Federal debt. A debt is not delinquent until a payment is past due to HUD for a deficiency judgment against the borrower in connection with an FHA claim. Rather than add the missing borrowers to CAIVRS, HUD determined it would remove default and claim data from the system and use it to exclusively identify borrowers with delinquent Federal debt. This will resolve the issue of incomplete reporting of delinquent federal debts greater than 3 years old. As of March 2024, the Office of Single Family Housing stated that it was working to have the system change request and updates to the web page finalized by the end of May 2024 and would then submit documentation of the actions implemented. The final action target date is June 28, 2024.


    Analysis

    To fully address this recommendation, HUD must provide evidence that it removed default and claim data from CAIVRS.

    Implementation of this recommendation should result in HUD putting $9.5 million to better use.

  • Summary

    Develop and implement system error checks to identify potential reporting issues.