The Changing Hazard Insurance Market and FHA
HUD OIG is auditing the changing hazard insurance market on FHA borrowers and FHA. Our review will involve the review of hazard insurance cost data from January 1, 2018, through July 31, 2024, in Florida, Texas, Louisiana, and California overlayed with FEMA high-risk disaster maps and risk exposure associated with FHA insured homes in those states. Our objective is to assess the impact of the changing hazard insurance market on FHA borrowers and the Mutual Mortgage Insurance Fund.
Review of HUD's Monetary Closed Audit Recommendations
HUD OIG is reviewing monetary audit recommendations that were closed by HUD under the new Closed Collection process. Upon receipt of a valid repayment agreement, HUD closes the recommendation but is still responsible for maintaining repayment documentation and ensuring adherence to the repayment agreement. Our review objective is to determine if HUD has established a repayment agreement and is receiving payments in accordance with the repayment agreement from entities for closed monetary audit recommendations.
Status of Puerto Rico Electrical System Enhancements Efforts
We reviewed the Puerto Rico Department of Housing’s (PRDOH) Electrical Power System Enhancements and Improvements programs to provide (1) background and funding information, (2) an update on the status of the programs and their progress, and (3) other relevant program information for interested stakeholders including Congress and the public.
HUD Addressed Multifamily Mortgage Application Processing Delays, but Additional Action Is Needed To Manage Future Backlogs
We audited the U.S. Department of Housing and Urban Development (HUD), Office of Multifamily Housing Programs’ efforts to address multifamily mortgage application processing delays. When applications for these loans are delayed, it slows the production and availability of affordable multifamily housing units. During the COVID-19 pandemic, HUD took action to eliminate a backlog of over 500 applications waiting to be assigned to underwriters for review. We did this audit to assess HUD’s efforts for receiving and screening applications and assigning them to underwriters.
The City and County of Honolulu Should Improve Its Fraud Risk Management Practices for Its ESG CARES Act Program
We audited the City and County of Honolulu’s Department of Budget and Fiscal Services’ and Department of Community Services’ (City) fraud risk management practices for its Emergency Solutions Grants Coronavirus Aid, Relief, and Economic Security Act (ESG CARES Act) program with the objective of assessing the maturity of the City’s fraud risk management framework that encompasses control activities to prevent, detect, and respond to fraud. Fraudulent activity in the ESG CARES Act program can lead to significant financial losses; reputational damage to the grantee and the U.S.