FHA Borrowers Did Not Always Properly Receive COVID-19 Forbearances From Their Loan Servicers

Recommendation Number: 2022-KC-0001-001-A
Status: Closed
Date Issued: Diciembre 15, 2021

Closed Date:

Diciembre 15, 2021

Perform data analysis of FHA’s portfolio to identify borrowers who are delinquent and did not fully benefit from the COVID-19 forbearance, including those in bankruptcy;

Publication Report

2022-KC-0001 | Diciembre 15, 2021

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), completed an audit to determine whether FHA-insured borrowers properly received the COVID-19-related forbearance. The Coronavirus Aid, Relief, and... más

Related Recommendations

Housing

2022-KC-0001-001-B
Closed on Diciembre 15, 2021
Summary

Develop a standardized brochure or informational pamphlet that would inform delinquent borrowers of their right to a forbearance under the CARES Act; and
2022-KC-0001-001-C
$5,430,000,000.00

Closed on Diciembre 15, 2021
Summary

Ensure that this information is distributed to delinquent borrowers so it can benefit the greatest number of borrowers to put $5.43 billion to better use by avoiding potential future losses on 112,160 loans.
2022-KC-0001-002-A
Closed on Septiembre 19, 2023
Summary

Review the 21 loans with improperly administered forbearance to ensure that the borrowers were remedied by the servicers, if possible, and ensure that these servicers updated their forbearance procedures to prevent future noncompliance.
2022-KC-0001-002-B
Closed on Septiembre 14, 2022
Summary

Ensure that the issues found during our audit are incorporated into QAD’s servicing monitoring reviews.
2022-KC-0001-002-C
Closed on Septiembre 14, 2022
Summary

Provide additional guidance to the servicers so they will limit their communication and collection efforts for the borrowers in forbearance.