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Report Fraud, Waste and Abuse
  • Recommendation Number: 2018-KC-0004-001-A
  • Status: Open
  • Date Issued: September 20, 2018

Pursue the collection of the $5,690,000 in surplus proceeds that HUD was entitled to receive from 2017 loan terminations.

Publication Report

2018-KC-0004 | September 20, 2018

HUD Did Not Always Identify and Collect Partial Claims Out of Surplus Proceeds From Nonconveyance Foreclosures

The U.S. Department of Housing Urban Development (HUD), Office of Inspector General audited HUD to determine whether it identified and collected outstanding partial claims out of surplus proceeds from nonconveyance foreclosures.  We initiated this… more

Related Recommendations

Housing

  •  
    Status
      Open
      Closed
    2018-KC-0004-001-B

    Implement a policy to require servicers to send surplus proceeds notifications to the HUD Secretary-held assets servicing contractor and establish procedures to improve HUD’s surplus proceeds collection efforts.

  •  
    Status
      Open
      Closed
    2018-KC-0004-001-C
    $6,770,000.00
    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.

    Redesign the partial claim program to eliminate its weaknesses and ensure that partial claims benefit from a stronger lien position to put $6,770,000 to better use.