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Línea Directa

REPORTAR FRAUDE, DESPERDICIO O ABUSO
  • Recommendation Number: 2017-LA-0003-001-E
  • Status: Open
  • Date Issued: Marzo 03, 2017

Ensure that lenders enter accurate and missing downpayment assistance gift data into FHA Connection when identified by HUD.

Publication Report

2017-LA-0003 | Marzo 02, 2017

HUD Failed To Adequately Oversee FHA-Insured Loans With Borrower-Financed Downpayment Assistance

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of Federal Housing Administration (FHA)-insured loans originated with borrower-financed downpayment assistance.  The audit was initiated based on the results from... más

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2017-LA-0003-001-A
    Summary

    Reconsider HUD’s position on questioned borrower-financed downpayment assistance programs, including an analysis of the financial impact to FHA borrowers, risk to the FHA program, and whether current statute prohibits borrower-financed downpayment assistance programs as they are currently structured.

  •  
    Status
      Open
      Closed
    2017-LA-0003-001-B
    Closed on Mayo 14, 2024
    Summary

    Develop and implement policies and procedures to strengthen HUD’s comprehensive loan-level, postendorsement, and lender reviews by evaluating loans containing downpayment assistance (for example, interest rates, fees, borrower certifications, lender reviews, impact to borrower, related agreements, etc.). Policies and procedures should include evaluating the structure of downpayment assistance programs, including whether the programs’ structure and funding mechanisms comply with all HUD requirements and guidelines.

  •  
    Status
      Open
      Closed
    2017-LA-0003-001-C
    Summary

    Develop specific requirements and guidance for lenders to review HFA downpayment assistance programs (for example, interest rates, fees, borrower certifications, lender reviews, impact to borrower, related agreements, etc.). Requirements and guidance should include evaluating the structure of downpayment assistance programs, including whether the programs’ structure and funding mechanisms comply with all HUD requirements and guidelines.

  •  
    Status
      Open
      Closed
    2017-LA-0003-001-D
    Summary

    Require lenders to obtain a borrower certification that details their participation in an HFA downpayment assistance program, including relevant details of the specific program (for example, impact on interest rate, mortgage payments, fees, equity, acknowledgement of other less costly loan products, etc.).

  •  
    Status
      Open
      Closed
    2017-LA-0003-001-F
    Summary

    Implement new data fields where lenders would be required to enter specific downpayment assistance information (for example, name of the source, name of assistance program, name of government entity or HFA, etc.) to allow for auditability and for HUD to generate reports and perform risk assessments.

  •  
    Status
      Open
      Closed
    2017-LA-0003-001-G
    Summary

    Review fees identified in this report that were charged as part of borrower-financed downpayment assistance programs and determine whether they are reasonable or necessary. HUD should immediately notify lenders to discontinue charging any fees that are determined to be unreasonable and unnecessary.

  •  
    Status
      Open
      Closed
    2017-LA-0003-001-H
    Summary

    Require any participating lender to reimburse borrowers that received an FHA loan with borrower-financed downpayment assistance for any fees that were determined to be unreasonable and unnecessary.