Provide annual training to its staff and management on HUD requirements for lender QC programs and provide proof of training to HUD.
2025-NY-1003 | June 20, 2025
Flat Branch Mortgage, Inc. Did Not Have a Sufficient Quality Control Program for FHA-Insured Loans
Housing
- Status2025-NY-1003-001-COpenClosed
- Status2025-NY-1003-001-DOpenClosed
Review the six EPD loans not previously selected for review and submit the results to HUD, including all findings of fraud or material misrepresentation, along with any other material findings that it is unable to mitigate. If required, Flat Branch should execute indemnification agreements or reimburse claims paid to help protect the FHA insurance fund from unacceptable risk.
- Status2025-NY-1003-001-EOpenClosed
Obtain credit reports and reverify borrower information for up to 279 EPD reviews performed and evaluate the risk of both new findings identified and existing findings contained in its QC files to confirm whether it self-reported to HUD all findings of fraud or material misrepresentation, along with any other material findings that its records did not show have been acceptably mitigated. If required, Flat Branch should execute indemnification agreements or reimburse claims paid to help protect the FHA insurance fund from unacceptable risk.
- Status2025-NY-1003-001-FOpenClosed
Evaluate its QC files for the 29 post-closing QC reviews in which it identified material findings to confirm whether it self-reported to HUD all findings of fraud or material misrepresentation, along with any other material findings that its records did not show have been acceptably mitigated. If required, Flat Branch should execute indemnification agreements or reimburse claims paid to help protect the FHA insurance fund from unacceptable risk.
- Status2025-NY-1003-001-GOpenClosed$228,793Funds 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.
Provide indemnification agreements or documentation to support the two loans in which it missed material deficiencies and the three loans in which it identified material findings that it did not acceptably mitigate or self-report to HUD. Implementation of this recommendation will protect the FHA insurance fund from an estimated loss of $228,793.
2025-OE-0801 | May 30, 2025
HUD Should Better Track Elevated Blood Lead Levels in HUD-Assisted Multifamily Properties
Housing
- Status2025-OE-0801-1AOpenClosed
Develop and implement a policy that clearly defines roles and responsibilities for Office of Multifamily Housing Programs’ staff for EBLL-related requirements, including the oversight of property owners’ compliance with these requirements.
- Status2025-OE-0801-1BOpenClosed
Establish processes to track reported EBLLs for the Office of Multifamily Housing Programs to easily identify the status of owners’ remediation efforts for units that were the source of the confirmed EBLL.
2025-KC-0002 | May 27, 2025
HUD’s Office of Single Family Housing Did Not Consistently Monitor Its Field Service Management Contractors’ Property Preservation and Protection Services
Housing
- Status2025-KC-0002-001-AOpenClosed
Develop and implement uniform procedures for the FSM desk monitoring review, including a second level review for the FSM monitoring reviews and process for each inspection type.
- Status2025-KC-0002-001-BOpenClosed
Update the FSM monitoring plan and FSM qualitative monitoring database to: (a) clearly define the monitoring questions, (b) include a section for Q7 New Not Ready to Show (NRTS) properties, (c) define which routine inspection reports will be reviewed to conduct the routine inspection monitoring reviews and (d) develop a monitoring question to evaluate photo date stamps.
- Status2025-KC-0002-001-COpenClosed
Ensure that program officials periodically provide all FSM CORs and staff involved in the monitoring process uniform property inspection training.
2025-NY-0001 | March 24, 2025
HUD Has Challenges Measuring the Impact of Homeownership Counseling
Housing
- Status2025-NY-0001-001-AOpenClosed
More clearly define successful prepurchase and postpurchase homeownership counseling outcomes and use these definitions to help establish performance metrics and benchmarks for HUD’s Office of Housing Counseling and HUD-approved housing counseling agencies. This should include the types of successful outcomes under the Homeownership Initiative Grant, as well as other positive outcomes for clients that do not involve immediate homeownership.
- Status2025-NY-0001-001-BOpenClosed
Implement routine client outcome data analysis to identify trends, quantify performance metrics and benchmarks, and measure the impact of prepurchase and postpurchase counseling on advancing homeownership. This should include routine analysis that HUD’s Office of Housing Counseling can implement based on data collected as well as continuing to pursue an updated housing counseling data system to help overcome client outcome data limitations.
- Status2025-NY-0001-001-COpenClosed
Enhance monitoring of HUD-approved housing counseling agencies’ performance, to include progress toward the established performance metrics and benchmarks.
2025-BO-0001 | March 11, 2025
HUD’s Office of Multifamily Housing Programs Can Improve Its Monitoring of Civil Rights Compliance
Housing
- Status2025-BO-0001-001-AOpenClosedClosed on July 09, 2025
We recommend that HUD’s Deputy Assistant Secretary for Multifamily Housing implement training at the regional level to provide instruction on and stress the importance of monitoring civil rights compliance as part of the MORs.
- Status2025-BO-0001-001-BOpenClosedClosed on July 09, 2025
We recommend that HUD’s Deputy Assistant Secretary for Multifamily Housing direct HUD staff to perform all required monitoring of civil rights compliance as part of the MORs conducted.
- Status2025-BO-0001-001-COpenClosedClosed on July 09, 2025
We recommend that HUD’s Deputy Assistant Secretary for Multifamily Housing instruct the PBCAs to include the completion of the addendum B checklist as part of the MORs performed by the PBCAs.
- Status2025-BO-0001-001-DOpenClosedClosed on July 09, 2025
We recommend that HUD’s Deputy Assistant Secretary for Multifamily Housing provide technical training to the multifamily property owners and management agents on completing addendum B accurately as part of the MORs.
2025-FO-1001 | March 07, 2025
The New York City Housing Authority Should Enhance Its Fraud Risk Management Practices
Public and Indian Housing
- Status2025-FO-1001-001-AOpenClosed
Develop a strategy to comprehensively assess and respond to fraud risks across NYCHA. The strategy should identify who within NYCHA is responsible for designing and overseeing activities to prevent and detect fraud. The strategy should also include how NYCHA will (1) assess fraud risks across NYCHA methodically and periodically, (2) create response plans for fraud risks that are identified, and (3) monitor and evaluate the effectiveness of fraud risk management activities. The strategy should also designate fraud risk responsibilities across NYCHA.
- Status2025-FO-1001-001-BOpenClosed
Based on the strategy, (1) complete an assessment of fraud risks across NYCHA, (2) create response plans for fraud risks that are identified, and (3) develop procedures to monitor and evaluate the effectiveness of fraud risk management activities.
- Status2025-FO-1001-001-COpenClosed
Assess whether HUD’s other extra-large PHAs have mature fraud risk management programs and use the assessment to develop a strategy to reduce the fraud risk exposure to HUD. The strategy should include working with extra-large PHAs to implement appropriate fraud mitigation activities.