HUD Failed To Adequately Oversee FHA-Insured Loans With Borrower-Financed Downpayment Assistance
Require any participating lender to reimburse borrowers that received an FHA loan with borrower-financed downpayment assistance for any fees that were determined to be unreasonable and unnecessary.
Open Recommendation
HUD Failed To Enforce the Terms of a Settlement Agreement With Fifth Third Bank Because It Did Not Record Indemnified Loans in Its Tracking System
Require FTB to reimburse HUD $311,699 for 2 loans for which HUD incurred losses when it sold the properties and 15 loans for which FHA insurance had been terminated and HUD had paid loss mitigation claims to FTB.
Open Recommendation
HUD Failed To Enforce the Terms of a Settlement Agreement With Fifth Third Bank Because It Did Not Record Indemnified Loans in Its Tracking System
Record in FHA Connection the remaining indemnified loans, avoiding $47,433,895 in estimated losses. The estimated loss is based on the loss severity rate of 46 percent of the total unpaid principal balance of $103,117,164.
Open Recommendation
HUD Failed To Enforce the Terms of a Settlement Agreement With Fifth Third Bank Because It Did Not Record Indemnified Loans in Its Tracking System
Develop and implement controls to ensure that indemnification agreements that result from U.S. Department of Justice settlements have been properly recorded in FHA Connection.
Open Recommendation
HUD Failed To Enforce the Terms of a Settlement Agreement With Fifth Third Bank Because It Did Not Record Indemnified Loans in Its Tracking System
Take appropriate administrative action against FTB for violations of the settlement agreement.
Open Recommendation
HUD Failed To Follow Departmental Clearance Protocols for FHA Programs, Policies, and Operations
Pursue departmental clearance for the 13 documents and policies identified that did not go through required departmental clearance. For any items that cannot be appropriately cleared, HUD should take appropriate action to recall the document or policy.
Open Recommendation
HUD Failed To Follow Departmental Clearance Protocols for FHA Programs, Policies, and Operations
Obtain missing HUD-22 concurrence forms for the 13 identified directives and update the Clearance Calendar tracking system to properly document clearance of the 42 directives with incomplete Clearance Calendar documentation. For any items that cannot be appropriately cleared, HUD should take Read More
Open Recommendation
HUD Failed To Follow Departmental Clearance Protocols for FHA Programs, Policies, and Operations
Review the Clearance Calendar and ensure that appropriate form HUD-22 concurrence forms were obtained and documented for directives issued by other HUD offices.
Open Recommendation
HUD Failed To Follow Departmental Clearance Protocols for FHA Programs, Policies, and Operations
Implement controls to ensure that future directives are reviewed and documented in the Clearance Calendar tracking system as required.
Open Recommendation
HUD Failed To Follow Departmental Clearance Protocols for FHA Programs, Policies, and Operations
Update policies and procedures for the directives process, including responsibilities for process oversight and clear guidance defining when clearance is required.
Open Recommendation
HUD Failed To Follow Departmental Clearance Protocols for FHA Programs, Policies, and Operations
Develop and provide training to appropriate staff and required reviewing offices regarding the departmental clearance process requirements.
Open Recommendation
HUD and FHAP Agencies Can Better Document Decisions Not to Investigate Fair Housing Complaints
Update HUD Handbook 8024.01, REV-2, and regional intake policies and procedures as necessary to include (1) minimum requirements that all regions follow for documenting in HEMS attempts to reach out to claimants when additional information is needed before closing inquiries; (2) policies and Read More
Open Recommendation
HUD and FHAP Agencies Can Better Document Decisions Not to Investigate Fair Housing Complaints
Develop a process to oversee housing discrimination allegations that FHAP agencies close and do not submit to HUD for dual-filing to ensure that the closure and jurisdictional determinations are consistent with the Fair Housing Act. To help address this recommendation, HUD should consider Read More
Open Recommendation
HUD Generally Ensured That Purchasers Followed the Requirements Outlined in the Conveyance, Assumption, and Assignment Contracts, but Improvements Are Needed
Update the terms in the purchase agreement to ensure that the agreements define “extenuating circumstance” in reference to foreclosure avoidance, establish how long stabilization outcomes can continue to be reported as planned, and establish financial or other penalties to hold purchasers Read More
Open Recommendation
HUD Had Not Established Deadlines for Reporting FHA-HAMP Nonincentivized Loan Modifications and Filing Nonincentivized Partial Claims
Update HUD’s loss mitigation policies, to include deadlines for the servicers to file the FHA-HAMP nonincentivized partial claims, and consider imposing sanctions for noncompliance with these deadline requirements.
Open Recommendation
HUD Had Not Established Deadlines for Reporting FHA-HAMP Nonincentivized Loan Modifications and Filing Nonincentivized Partial Claims
Update HUD’s loss mitigation policies, to include deadlines for the servicers to report the new terms of the FHA-HAMP nonincentivized loan modifications, and consider imposing sanctions for noncompliance with these deadline requirements.
Open Recommendation
HUD Had Implemented Most of the Required Responsibilities Stated in the Geospatial Data Act of 2018
Take appropriate actions to prioritize the need for resources necessary to ensure that HUD fully implements the remaining four responsibilities as required by sections 759(a)(1), 759(a)(2), 759(a)(4), and 759(a)(5) of the Geospatial Data Act of 2018.
Open Recommendation
HUD Has Not Referred Troubled Public Housing Agencies as the Law and Regulations Require
Refer troubled PHAs directly to the Assistant Secretary for Public and Indian Housing when they have not met the 1- or 2-year recovery requirements.
Open Recommendation
HUD Has Not Referred Troubled Public Housing Agencies as the Law and Regulations Require
Ensure that referrals to the Assistant Secretary for Public and Indian Housing recommend only recovery options allowed by the law and regulations.
Open Recommendation
HUD Has Not Referred Troubled Public Housing Agencies as the Law and Regulations Require
Update training to include the actions that PIH must take when a troubled PHA does not meet the 1- or 2-year recovery requirements.
Open Recommendation