For any of the 3,024 loans found to be subject to the temporary policy or otherwise ineligible for insurance, require the lenders to execute indemnification agreements covering a period of at least 5 years or reimburse HUD for any claims to put up to $26,840,071 to better use by protecting HUD against potential losses. For any indemnification agreements executed, HUD should properly store the agreements and record the agreement data.
2023-NY-0002 | Mayo 15, 2023
HUD Can Improve Oversight of Its Temporary Endorsement Policy for Loans in COVID-19 Forbearance
Housing
- Status2023-NY-0002-001-DOpenClosed$26,840,071Funds 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.
- Status2023-NY-0002-001-GOpenClosed$3,493,636Funds 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.
Record indemnification agreement data in its system for the 34 loans for which the lender properly executed an indemnification agreement before endorsement and HUD had not recorded the agreement in its system to put up to $3,493,636 to better use by avoiding potential losses.
- Status2023-NY-0002-001-HOpenClosed
Review and correct indemnification agreement data in HUD’s computer systems as needed for all agreements currently classified as having 2-year terms and all agreements related to 2-year agreements contained on its SharePoint site to ensure that its systems contain accurate data for monitoring and enforcement of agreements. This recommendation includes but is not limited to reviewing the agreement number, agreement term, billing lender, expiration date, refinance indicator, and source indicator.
- Status2023-NY-0002-001-IOpenClosed
Update indemnification agreements or obtain updated indemnification agreements for the 30 loans for which the indemnification agreements had incorrect or missing information or were not signed by HUD and upload them to its SharePoint site so that such agreements are properly executed and can be traced to HUD’s computer systems for future use.
- Status2023-NY-0002-001-JOpenClosed
Consider evaluating whether and how a similar policy for disasters or emergencies or a permanent version of the policy could be used to manage risk to the insurance fund while increasing lender participation. This should include further studying lenders’ use of the policy and the long-term performance of loans endorsed under it. It could also include reviewing the compliance, guidance, and process issues identified during this audit and through the resolution of the other recommendations to refine any future endorsement policies related to forbearance.
2023-BO-0002 | Marzo 30, 2023
HUD Could Improve Its Field Service Management Quality Assurance Surveillance Plans
Chief Procurement Officer
- Status2023-BO-0002-001-AOpenClosed
We recommend that the Chief Procurement Officer direct the contracting officers to review the current FSM contracts’ QASP and update accordingly to ensure that all minimum contract requirements are included.
- Status2023-BO-0002-001-BOpenClosed
We recommend that the Chief Procurement Officer direct the contracting officers to oversee the implementation of the current FSM contracts’ QASP.
- Status2023-BO-0002-001-COpenClosed
We recommend that the Chief Procurement Officer require the contracting officers to implement the policies and procedures in the HUD Acquisition Policy and Procedure Handbook for completion of HUD’s FSM contractor performance assessment reports in CPARS to ensure that Government past performance is documented properly and in a timely manner, at least annually, for use by all Federal agencies and maintained in the contract files.
- Status2023-BO-0002-001-DOpenClosed
We recommend that the Chief Procurement Officer require all staff involved in the oversight of FSM contracts to maintain the required documentation in the official contract file identified by HUD policy to support the contracts.
- Status2023-BO-0002-001-EOpenClosed
We recommend that the Chief Procurement Officer update HUD’s field service manager contract monitoring plan and FSM qualitative monitoring databases used to monitor contractor performance to align with the QASP and contractual requirements as noted in recommendation 1G below.
- Status2023-BO-0002-001-FOpenClosed
We recommend that the Chief Procurement Officer require the contracting officers to formally designate CORs in a timely manner and maintain the required documentation in the proper location identified in the relevant HUD policies and procedures, which fully supports the CORs’ oversight of the FSM contract.
2023-LA-0004 | Marzo 29, 2023
Opportunities Exist to Enhance Oversight of the Foster Youth to Independence Initiative to Improve Program Effectiveness
Public and Indian Housing
- Status2023-LA-0004-001-COpenClosed
For each youth referred, require PHAs to obtain PCWA certification that the PCWA will provide or secure access to supportive services.
2023-AT-1001 | Marzo 28, 2023
The State of Georgia Did Not Adequately Monitor Its Harvey, Irma, and Maria Grants’ Activities and Subrecipients
Community Planning and Development
- Status2023-AT-1001-001-AOpenClosed
Provide technical assistance to the State and the staff to ensure that they understand the requirements for conducting a monitoring review in accordance with regulations.
- Status2023-AT-1001-001-BOpenClosed
Instruct the State to update and implement the CDBG-DR standard operating procedures, which clearly outline what activities, including the frequency, will be reviewed by its monitoring and internal audit function.
- Status2023-AT-1001-001-COpenClosed
Instruct the State to conduct monitoring reviews of its CDBG-DR HIM activities and subrecipients that satisfy monitoring requirements.
- Status2023-AT-1001-001-DOpenClosed
Work with the State to develop and implement policies and procedures to ensure that monitoring is conducted remotely in the event that it cannot be conducted onsite.
- Status2023-AT-1001-001-EOpenClosed
Instruct the State to update and implement policies and procedures to ensure that the results of the CDBG-DR internal audits are shared by the State’s Commissioner with CDBG-DR program staff to allow for the resolution of any findings and required corrective actions.
2023-KC-0004 | Marzo 28, 2023
Ginnie Mae Mostly Implemented a Crisis Readiness Program That Followed Federal Guidance
Government National Mortgage Association
- Status2023-KC-0004-002-AOpenClosed
Develop and implement an agencywide crisis readiness plan addressing likely hazards arising from a crisis. This guidance should include all key elements that meet CIGFO crisis guidance.
2023-CH-0002 | Marzo 06, 2023
HUD Could Improve Its Process for Evaluating the Performance of Public Housing Agencies’ Housing Choice Voucher Programs
Public and Indian Housing
- Status2023-CH-0002-001-AOpenClosed
We recommend that the Deputy Assistant Secretary for Public Housing and Voucher Programs enhance SEMAP or develop a new performance measurement process that would identify PHAs with underperforming HCV Programs, which should include an assessment of PHAs’ ability to maximize assistance to house families.
2023-FW-0001 | Marzo 03, 2023
CDBG-DR Program Generally Met Low- and Moderate-Income Requirements
Community Planning and Development
- Status2023-FW-0001-001-AOpenClosed$666,666Questioned 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 CPD’s Office of Disaster Recovery review the one grantee with a grant totaling $666,666 that did not meet the overall LMI requirement and address the noncompliance.