Acting IG Begg Response to Senator Blumenthal Regarding a Review of DOGE Activity at HUD
August 4, 2025, Letter from Acting Inspector General Begg responding to a request from the Ranking Member Blumenthal, Senate Committee on Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations, to review DOGE activities within HUD.
Management of a Maryland Federal Housing Administration (FHA)-Insured Multifamily Property
HUD OIG is reviewing a Federal Housing Administration (FHA)-insured multifamily property in Maryland. The property owner manages units in accordance with its regulatory agreement which includes restrictions on the use of project funds and assets. Our objective is to determine whether the property was managed in accordance with its regulatory agreement.
HUD's Inventory Management System/PIH Information Center (IMS/PIC) Fatal Errors- Housing Choice Voucher Program
HUD OIG is auditing HUD's Inventory Management System/PIH Information Center (IMS/PIC) fatal errors related to its Housing Choice Voucher (HCV) program. Fatal errors, which result from inaccurate or incomplete data, are serious in nature and prevent PHAs from submitting data from HUD form 50058 into IMS/PIC. Our audit objective is to determine the extent and impact of IMS/PIC identified fatal errors on public housing agencies’ (PHA) Housing Choice Voucher Programs.
Management of a California Federal Housing Administration (FHA)-Insured Multifamily Property
HUD OIG is reviewing a Federal Housing Administration (FHA)-insured multifamily property in California. The property owner manages units in accordance with its regulatory agreement which includes restrictions on the use of project funds and assets. Our objective is to determine whether the property was managed in accordance with its regulatory agreement.
Neighborhood Loans, Inc. Did Not Have a Sufficient Quality Control Program for FHA-Insured Loans
We audited Neighborhood Loans, Inc., to evaluate its quality control (QC) program for originating and underwriting Single Family FHA-insured loans. Our audit covered the period October 2020 through September 2022. We selected Neighborhood Loans for review based on its increasing loan volume and delinquency rate and because its rate of self-reporting loans to HUD when it identified fraud, material misrepresentations, and other material findings that it could not mitigate was below average for 5 of the last 6 years.