Ensure that the issues found during our audit are incorporated into QAD’s servicing monitoring reviews.
Publication Report
2022-KC-0001 | December 15, 2021
FHA Borrowers Did Not Always Properly Receive COVID-19 Forbearances From Their Loan Servicers
The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), completed an audit to determine whether FHA-insured borrowers properly received the COVID-19-related forbearance. The Coronavirus Aid, Relief, and… moreRelated Recommendations
Housing
Perform data analysis of FHA’s portfolio to identify borrowers who are delinquent and did not fully benefit from the COVID-19 forbearance, including those in bankruptcy;
Develop a standardized brochure or informational pamphlet that would inform delinquent borrowers of their right to a forbearance under the CARES Act; and
- Status2022-KC-0001-001-COpenClosedClosed on December 15, 2021$5,430,000,000.00Funds 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.
Ensure that this information is distributed to delinquent borrowers so it can benefit the greatest number of borrowers to put $5.43 billion to better use by avoiding potential future losses on 112,160 loans.
Review the 21 loans with improperly administered forbearance to ensure that the borrowers were remedied by the servicers, if possible, and ensure that these servicers updated their forbearance procedures to prevent future noncompliance.
Provide additional guidance to the servicers so they will limit their communication and collection efforts for the borrowers in forbearance.