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Closed Date:
Febrero 25, 2020

Reinforce existing guidance (such as mortgagee letters, notifications to servicers, and training) to servicers to ensure that they engage in required loss mitigation.

Publication Report

2017-LA-0004 | Septiembre 14, 2017

HUD Did Not Have Adequate Controls To Ensure That Servicers Properly Engaged in Loss Mitigation

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of servicers’ use of loss mitigation programs.  The audit was initiated in response to an Office of Inspector General preaudit analysis of HUD data, which determined... más

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2017-LA-0004-001-A
    Closed on Septiembre 30, 2020
    $120,902,564.00
    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.

    Summary

    Revise servicing review and monitoring policies and procedures to emphasize increased controls on reviewing claim loans showing that no loss mitigation evaluation occurred. Revising the policies and procedures would reduce the risk to HUD and result in a projected $120,902,564 in funds to be put to better use (appendix A).

  •  
    Status
      Open
      Closed
    2017-LA-0004-001-B
    Closed on Marzo 04, 2020
    Summary

    Develop and implement policies and procedures to ensure that the Office of Single Family Asset Management and Office of Lender Activities and Program Compliance communicate the results of their servicing reviews to each other.

  •  
    Status
      Open
      Closed
    2017-LA-0004-001-C
    Closed on Febrero 25, 2020
    Summary

    Update and revise policies and procedures, including reinforcement of guidance (for example, mortgagee letters, notifications to servicers, or training) to ensure that servicers accurately report the status of delinquent loans to HUD.

  •  
    Status
      Open
      Closed
    2017-LA-0004-001-D
    $1,673,117.00
    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.

    Summary

    Require indemnification for the 26 loans that had significant servicing deficiencies. In these cases, the loss to HUD was $1,673,117 (appendixes A and D).

  •  
    Status
      Open
      Closed
    2017-LA-0004-001-F
    Summary

    Require that the servicers with significant and other deficiencies revise and update their policies and procedures, as necessary, to ensure that they comply with HUD requirements and guidance on loss mitigation evaluation.