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Crime, Fraud, Waste, and Abuse
  • Recommendation Number: 2018-KC-0001-001-B
  • Status: Open
  • Date Issued: March 26, 2018

Revise the single-family handbook to comply with regulations that prevent loans to borrowers with delinquent child support subject to Federal offset.

Publication Report

2018-KC-0001 | March 25, 2018

FHA Insured $1.9 Billion in Loans to Borrowers Barred by Federal Requirements

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General audited Federal Housing Administration (FHA)-insured loans from calendar year 2016.  Our audit objective was to determine whether FHA insured loans to borrowers… more

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2018-KC-0001-001-A
    $1,905,340,944.00
    Funds Put to Better Use

    Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.

    Priority
    Priority

    We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

    Develop a method for using the Do Not Pay portal during the underwriting process to identify delinquent child support and delinquent Federal debt to prevent future FHA loans to ineligible borrowers to put $1.9 billion to better use.

    Status

    The Office of Housing started the integration between the Treasury’s Do Not Pay portal and HUD’s Computerized Homes Underwriting Reporting System (CHUMS).  The system interface implementation was on track, but due to the Federal Government Shutdown, HUD was unable to meet its implementation target date of December 31, 2025.  As of January 2026, HUD is working on the policy and establishing a new target date.

    Analysis

    To fully address this recommendation, HUD must provide evidence that it has implemented applicant screening against the Do Not Pay portal to identify delinquent child support and delinquent federal debt to prevent future FHA loans from going to ineligible borrowers.

    Implementation of this rule should result in HUD putting $1.9 billion to better use.

  •  
    Status
      Open
      Closed
    2018-KC-0001-001-C
    Closed on July 18, 2018

    Schedule the timely renewal of data-sharing agreements to prevent data loss in CAIVRS or discontinue use of the system if implementation of 1A makes CAIVRS unnecessary.