Develop a method for using the Do Not Pay portal during the underwriting process to identify delinquent child support and delinquent Federal debt to prevent future FHA loans to ineligible borrowers to put $1.9 billion to better use.
Status
The Office of Housing has approved prioritization of funding for Integration between Do Not Pay portal and CHUMS. Funding was allocated to the CHUMS IT contractor on January 26, 2024, to integrate Treasury’s Do Not Pay system with CHUMS, and the IT development project was kicked off the week of February 5, 2024.
As of June 2024, the Office of Single Family Housing reported that it is working with OCIO and Treasury on the business needs for the project, and estimated that the project would be complete by September 30, 2024.
Analysis
To fully address this recommendation, HUD must provide evidence that it has implemented applicant screening against the Do Not Pay portal to identify delinquent child support and delinquent Federal debt to prevent future FHA loans going to ineligible borrowers.
Implementation of this rule should result in HUD putting $1.9 billion to better use.
Publication Report
2018-KC-0001 | Marzo 26, 2018
FHA Insured $1.9 Billion in Loans to Borrowers Barred by Federal Requirements
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Federal Housing Administration (FHA)-insured loans from calendar year 2016. Our audit objective was to determine whether FHA insured loans to borrowers... másRelated Recommendations
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Revise the single-family handbook to comply with regulations that prevent loans to borrowers with delinquent child support subject to Federal offset.
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Schedule the timely renewal of data-sharing agreements to prevent data loss in CAIVRS or discontinue use of the system if implementation of 1A makes CAIVRS unnecessary.