Reimburse $13,726 to FHA borrowers for the fees that were not customary or reasonable.
2015-LA-1010 | Septiembre 30, 2015
loanDepot's FHA-Insured Loans With Golden State Finance Authority Downpayment Assistance Gifts Did Not Always Meet HUD Requirements
Housing
- Status2015-LA-1010-001-EOpenClosed$13,726Questioned 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.
2015-AT-0002 | Agosto 21, 2015
HUD’s Office of Multifamily Asset Management and Portfolio Oversight Did Not Comply With Its Requirements For Monitoring Management Agents’ Costs
Housing
- Status2015-AT-0002-001-AOpenClosed
Comply with its Management Agent Handbook requirements that stipulate HUD must perform management reviews of the management agent’s central office activities as well as regular onsite reviews of functions carried out at the projects. These central office reviews should be performed at least once every 18 months.
2015-PH-0004 | Agosto 21, 2015
HUD Policies Did Not Always Ensure That HECM Borrowers Complied With Residency Requirements
Housing
- Status2015-PH-0004-001-COpenClosed
Implement controls to prevent or reduce instances of borrowers violating HECM program residency requirements by concurrently participating in multifamily programs, including policies and procedures to at least annually coordinate with HUD’s Office of Multifamily Housing Programs to match borrower data in the Single Family Data Warehouse to member data in the Tenant Rental Assistance Certification System.
2015-CH-0001 | Julio 31, 2015
HUD Did Not Always Provide Adequate Oversight of Its Section 203(k) Rehabilitation Loan Mortgage Insurance Program
Housing
- Status2015-CH-0001-001-AOpenClosed$792,837Questioned 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.
We recommend that HUD’s Deputy Assistant Secretary for Single Family Housing require the lenders to support that the repairs to the properties associated with the 32 loans without evidence of permits complied with local code or reimburse HUD $792,837 for the escrow repair funds.
- Status2015-CH-0001-001-BOpenClosed$305,395Questioned 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.
We recommend that HUD’s Deputy Assistant Secretary for Single Family Housing require the lenders to support that the repairs to the properties associated with the six loans were not structural repairs or indemnify HUD for the four active loans with a total estimated loss of $222,073 and reimburse HUD for the actual loss of $83,322 incurred on the sale of two properties associated with FHA case numbers 052-4308836 and 034-8239100.
- Status2015-CH-0001-001-COpenClosed$83,715Questioned 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.
We recommend that HUD’s Deputy Assistant Secretary for Single Family Housing require the lenders to support that the borrower for FHA case number 451-1165810 was not reimbursed for the cost of labor or indemnify the loan with an estimated loss amount of $83,715, based on the loss severity rate of 50 percent of the unpaid principal balance of $167,429 as of January 29, 2015.
- Status2015-CH-0001-001-DOpenClosed$39,367Questioned 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.
Support that the repair conditions and comments indicated in the direct endorsement underwriter form, form HUD-54114, were satisfied for FHA case number 501-8198149. If the repair conditions and comments were not properly addressed, the lenders should indemnify the loan with an estimated loss amount of $39,367, based on the loss severity rate of 50 percent of the unpaid principal balance of $78,733 as of January 29, 2015.
- Status2015-CH-0001-002-COpenClosed
Determine the number of 203(k) loans impacted by the incorrect loan-to-value ratio for mortgage insurance premium calculations and when applicable, reimburse borrowers or apply the overpaid premiums as credits toward borrowers’ future premium payments.
2015-LA-1005 | Julio 09, 2015
NOVA Financial & Investment Corporation’s FHA-Insured Loans With Downpayment Assistance Gifts Did Not Always Meet HUD Requirements
Housing
- Status2015-LA-1005-001-EOpenClosed$383,212Questioned 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.
Reimburse FHA borrowers $376,102 for the unallowable, misrepresented discount fees and $7,110 for fees that were not customary or reasonable.
2014-PH-0001 | Septiembre 30, 2014
HUD Policies Did Not Always Ensure That HECM Borrowers Complied With Residency Requirement
Housing
- Status2014-PH-0001-001-BOpenClosed
Implement controls to prevent or mitigate instances of borrowers violating HECM program residency requirements by concurrently participating in the Voucher program, including policies and procedures to at least annually coordinate with HUD’s Office of Public Housing to match borrower data in the Single Family Data Warehouse to member data in the Public Housing Information Center.
2014-KC-0002 | Julio 02, 2014
The Data in CAIVRS Did Not Agree with the Data in FHA’s Default and Claims System
Housing
- Status2014-KC-0002-001-BOpenClosed$9,501,619Funds 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.
PrioridadPriorityWe believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.
Update selection rules for CAIVRS to provide for complete reporting of all ineligible borrowers to put $9.5 million to better use.
Status
In 2020, HUD suspended reporting delinquencies and defaults to the Credit Alert Verification Reporting System (CAIVRS) because these debts are owed to the lender and are not delinquent Federal debt. A debt is not delinquent until a payment is past due to HUD for a deficiency judgment against the borrower in connection with an FHA claim. Rather than add the missing borrowers to CAIVRS, HUD determined it would remove default and claim data from the system and use it to exclusively identify borrowers with delinquent Federal debt. This will resolve the issue of incomplete reporting of delinquent federal debts greater than 3 years old. As of early June 2024, the Office of Single Family Housing stated that it was on target to complete its action plan by June 28, 2024.
Analysis
To fully address this recommendation, HUD must provide evidence that it removed default and claim data from CAIVRS.
Implementation of this recommendation should result in HUD putting $9.5 million to better use.
2014-NY-0001 | Febrero 18, 2014
HUD Did Not Provide Effective Oversight of Section 202 Multifamily Project Refinances
Housing
- Status2014-NY-0001-001-BOpenClosed
We recommend that the Director, Office of Multifamily Asset Management, require that each Hub or field office review its refinanced Section 202/223(f) projects for debt service savings amounts, utilizing data provided from this audit for possible additional debt service savings. Where legally possible each Hub or field office should identify, account for by project, and use these amounts for current and future opportunities benefiting tenants or to fund reductions in housing assistance payments.
2013-CH-1011 | Septiembre 30, 2013
The Michigan State Housing Development Authority, Lansing, MI, Did Not Follow HUD’s Requirements Regarding the Administration of Its Program
Housing
- Status2013-CH-1011-001-AOpenClosed$31,148,477Funds 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.
We recommend that the Director of HUD’s Detroit Office of Multifamily Housing Programs require the Authority to ensure that $31,148,477 in residual receipts for the 15 projects as of May 31, 2013, is used to reduce or offset housing assistance payments in accordance with HUD’s requirements.
- Status2013-CH-1011-002-AOpenClosed$608,337Questioned 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.
We recommend that the Director of HUD’s Detroit Office of Multifamily Housing Programs require the Authority to reimburse the U.S. Treasury $608,337 ($77,856 436,759 $93,722) for the three projects with terminated program contracts.
- Status2013-CH-1011-002-COpenClosed$12,830Questioned 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.
We recommend that the Director of HUD’s Detroit Office of Multifamily Housing Programs require the Authority to reimburse the U.S. Treasury $12,830 from non-Federal funds for the lost interest.
2013-PH-0002 | Diciembre 19, 2012
HUD Policies Did Not Always Ensure That Borrowers Complied With Program Residency Requirements
Housing
- Status2013-PH-0002-001-BOpenClosed
Implement control policies or procedures to at least annually coordinate with HUD’s Office of Public Housing to match data in the Single Family Data Warehouse to data in the Public Housing Information Center to prevent or mitigate instances of borrowers violating Program residency requirements by renting their properties to Section 8 voucher participants.
2004-BO-1002 | Noviembre 04, 2003
Family Living Adult Care Center FHA Project Number 024-22019 Biddeford and Saco, Maine
Housing
- Status2004-BO-1002-001-AOpenClosed$2,687,822Questioned 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.
Recover from owner $2,687,822, the difference between $3,662,822 owed to HUD by owner and $975,000 proceeds of foreclosure sale.
2002-PH-1005 | Septiembre 30, 2002
Philadelphia Regional Alliance of HUD Tenants, OTAG and ITAG, Philadelphia PA
Housing
- Status2002-PH-1005-001-COpenClosed$121,500Questioned 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.
Support unsupported expenditures of $60,750 that were drawn down for the grant. For any unsupported expenditures require grantee reimburse HUD.