HUD Did Not Provide Adequate Oversight of Its Family Self-Sufficiency Program
Develop and implement policies and procedures to ensure that documentation is maintained by grantees to support program participants’ contractual agreements.
Open Recommendation
HUD Did Not Provide Effective Oversight of Section 202 Multifamily Project Refinances
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 Read More
Open Recommendation
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That State Disaster Grantees Followed Proficient Procurement Processes
Clarify that if a State receives a disaster recovery grant and chooses to certify that its procurement process is equivalent to Federal procurement standards, “equivalent” means that its procurement process fully aligns with, or meets the intent of, each of the Federal procurement standards at 2 Read More
Open Recommendation
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That State Disaster Grantees Followed Proficient Procurement Processes
Improve its controls to ensure that appropriate staff adequately evaluates the proficiency of State grantee procurement processes for States that select the equivalency option. This includes ensuring that staff that specializes in procurement review the documentation to ensure that State Read More
Open Recommendation
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That State Disaster Grantees Followed Proficient Procurement Processes
Clarify and improve its guidance for State grantees to explain what it means to have a procurement process that fully aligns with, or meets the intent of, each of the Federal procurement standards at 2 CFR 200.318 through 200.326.
Open Recommendation
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That State Disaster Grantees Followed Proficient Procurement Processes
Provide procurement training and technical assistance to State grantees to ensure that they understand the intent of each of the Federal procurement standards at 2 CFR 200.318 through 200.326.
Open Recommendation
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That FHA-Insured Properties Nationwide Had Safe Water
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 Read More
Open Recommendation
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That FHA-Insured Properties Nationwide Had Safe Water
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.
Open Recommendation
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That FHA-Insured Properties Nationwide Had Safe Water
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.
Open Recommendation
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That FHA-Insured Properties Nationwide Had Safe Water
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.
Open Recommendation
HUD Did Not Provide Sufficient Guidance and Oversight To Ensure That FHA-Insured Properties Nationwide Had Safe Water
Consider requiring water testing for all FHA-insured properties.
Open Recommendation
HUD Did Not Sufficiently Flag Unacceptable Physical Condition Scores To Assess Its Controlling Participants
Implement a quality control review to ensure that successive below-60 REAC inspection score flags are entered into APPS.
Open Recommendation
HUD Did Not Sufficiently Flag Unacceptable Physical Condition Scores To Assess Its Controlling Participants
Update APPS to automatically flag a property that receives successive below-60 REAC inspection scores.
Open Recommendation
HUD Failed To Adequately Oversee FHA-Insured Loans With Borrower-Financed Downpayment Assistance
Reconsider HUD’s position on questioned borrower-financed downpayment assistance programs, including an analysis of the financial impact to FHA borrowers, risk to the FHA program, and whether current statute prohibits borrower-financed downpayment assistance programs as they are currently Read More
Open Recommendation
HUD Failed To Adequately Oversee FHA-Insured Loans With Borrower-Financed Downpayment Assistance
Develop and implement policies and procedures to strengthen HUD’s comprehensive loan-level, postendorsement, and lender reviews by evaluating loans containing downpayment assistance (for example, interest rates, fees, borrower certifications, lender reviews, impact to borrower, related agreements Read More
Open Recommendation
HUD Failed To Adequately Oversee FHA-Insured Loans With Borrower-Financed Downpayment Assistance
Develop specific requirements and guidance for lenders to review HFA downpayment assistance programs (for example, interest rates, fees, borrower certifications, lender reviews, impact to borrower, related agreements, etc.). Requirements and guidance should include evaluating the structure of Read More
Open Recommendation
HUD Failed To Adequately Oversee FHA-Insured Loans With Borrower-Financed Downpayment Assistance
Require lenders to obtain a borrower certification that details their participation in an HFA downpayment assistance program, including relevant details of the specific program (for example, impact on interest rate, mortgage payments, fees, equity, acknowledgement of other less costly loan Read More
Open Recommendation
HUD Failed To Adequately Oversee FHA-Insured Loans With Borrower-Financed Downpayment Assistance
Ensure that lenders enter accurate and missing downpayment assistance gift data into FHA Connection when identified by HUD.
Open Recommendation
HUD Failed To Adequately Oversee FHA-Insured Loans With Borrower-Financed Downpayment Assistance
Implement new data fields where lenders would be required to enter specific downpayment assistance information (for example, name of the source, name of assistance program, name of government entity or HFA, etc.) to allow for auditability and for HUD to generate reports and perform risk Read More
Open Recommendation
HUD Failed To Adequately Oversee FHA-Insured Loans With Borrower-Financed Downpayment Assistance
Review fees identified in this report that were charged as part of borrower-financed downpayment assistance programs and determine whether they are reasonable or necessary. HUD should immediately notify lenders to discontinue charging any fees that are determined to be unreasonable and unnecessary Read More
Open Recommendation