U.S. flag

An official website of the United States government Here’s how you know

The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

Línea Directa

REPORTAR FRAUDE, DESPERDICIO O ABUSO
  • Recommendation Number: 2017-PH-0003-001-E
  • Status: Closed
  • Date Issued: Septiembre 29, 2017
Closed Date:
Diciembre 30, 2019

Consider requiring water testing for all FHA-insured properties.

Publication Report

2017-PH-0003 | Septiembre 29, 2017

HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That FHA-Insured Properties Nationwide Had Safe Water

We audited the U.S. Department of Housing and Urban Development’s (HUD) oversight of safe water requirements for Federal Housing Administration (FHA)-insured loans nationwide.  We conducted the audit based on news reports that identified lead... más

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2017-PH-0003-001-A
    Closed on Agosto 26, 2019
    Summary

    Direct the applicable lenders to provide evidence that the properties for the 1,383 FHA-insured loans not included in our sample had a safe and potable water source, or that the appraisers had not notified the lender of the water quality issue on their appraisals. If the lenders cannot provide this evidence, HUD should direct them to perform water testing and any necessary remediation to ensure that the properties have a safe and potable water source, or indemnify HUD against future loss.

  •  
    Status
      Open
      Closed
    2017-PH-0003-001-B
    Closed on Agosto 26, 2019
    Summary

    Take appropriate administrative action against the lenders or appraisers for any cases in which it finds that they did not take appropriate steps to ensure that properties had a safe and potable water source.

  •  
    Status
      Open
      Closed
    2017-PH-0003-001-C
    Closed on Agosto 05, 2019
    Summary

    Develop and implement additional guidance to advise lenders and appraisers when water testing is required for properties serviced by a public water system which has issued a public notice of water contamination.

  •  
    Status
      Open
      Closed
    2017-PH-0003-001-D
    Closed on Agosto 05, 2019
    $238,090,214.00
    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

    Develop and implement policies and procedures to ensure that appraisers comply with guidance implemented to resolve recommendation 1C, including penalties for failure to comply, thereby ensuring that at least $238,090,214 million is put to better use.