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Closed Date:
April 08, 2024

Consider accounting implications to the gross HECM loans receivable balance for the $20 million lost in security interests.

Publication Report

2024-FO-0002 | November 13, 2023

Audit of FHA’s Fiscal Years 2023 and 2022 Financial Statements

We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of FHA as of and for the fiscal years ended September 30, 2023 and 2022, and to provide reports on FHA’s (1) internal control over… more

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    Status
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      Closed
    2024-FO-0002-001-A
    Closed on August 27, 2024

    Develop a plan and a timeline that ensures all due and payable partial claims are transferred to the FOC, and subsequently processed by the FOC.

  •  
    Status
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    2024-FO-0002-001-B
    Closed on June 18, 2024

    Develop and implement procedures to i) monitor the transfer of due and payable partial claims from NSC to the FOC for collection, ii) determine the financial statement impact of not referring due and payable partial claims to the FOC, and iii) decide when FHA will record a reclassification entry to accounts receivable for those due and payable partial claims that are not transferred to the FOC timely.

  •  
    Status
      Open
      Closed
    2024-FO-0002-001-D
    Closed on May 07, 2024

    Record an adjusting entry to remove the duplicate $44 million from the gross HECM loans receivable balance as of September 30, 2023.

  •  
    Status
      Open
      Closed
    2024-FO-0002-001-E
    Closed on July 11, 2024

    Identify and remove all duplicate transactions from the accounting module and prevent future occurrences.

  •  
    Status
      Open
      Closed
    2024-FO-0002-001-F
    Closed on August 14, 2024

    Develop and enhance training for servicing the HECM portfolio.

  •  
    Status
      Open
      Closed
    2024-FO-0002-001-G
    Closed on August 15, 2024

    Develop corrective procedures to bring the HECM portfolio servicing current, initiate collection proceedings for due and payable loans, redeem the tax certificates for properties for which FHA lost its security interest, and implement a solution to monitor tax payments to prevent tax delinquencies and avoid FHA’s risk of loss in loan security interest.