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HUD OIG is auditing HUD's CDBG-DR National Disaster Resilience (NDR) program, which was designed to promote risk assessment, stakeholder engagement, and resilience planning to states and communities. Under this program, HUD awarded nearly $1 billion to 13 States and local governments for resilient infrastructure, housing, and economic revitalization activities related to major disasters that occurred between 2011 and 2013.
We performed an audit of loan servicers’ compliance with the Federal Housing Administration’s (FHA) requirements for providing loss mitigation assistance to borrowers after their COVID-19 forbearance ended. We initiated the audit based on the large number of borrowers exiting forbearance, because the loss mitigation programs available to these borrowers were new and created a risk for both borrowers and the FHA insurance fund when servicers do not properly provide loss mitigation. Our audit objective was to determine whether servicers provided borrowers of FHA-insur
