Further revise and implement Single Family Insurance System – Claims Subsystem controls to address deficiencies that allowed payment for a limited number of claims that were ineligible due to prior loan modification or FHA-HAMP option within 24 months.
2019-LA-0801 | July 15, 2019
HUD Completed the Agreed-Upon Corrective Actions for One of the Two Recommendations Reviewed From Prior OIG Audit Report 2015-LA-0001 on FHA-HAMP Partial Claims
Housing
- Status2019-LA-0801-001-BOpenClosedClosed on September 28, 2020
- Status2019-LA-0801-001-COpenClosed$345,927Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on November 03, 2020Provide support of eligibility or require repayment of $333,178 for the 28 identified potential duplicate claims with reported matching partial claim note amounts and take appropriate action as necessary to ensure that related partial claim note amounts are correctly reflected within HUD’s Single Family Mortgage Asset Recovery Technology system for loan-servicing purposes.
2019-FW-1003 | June 10, 2019
Northline Point Apartments, Houston, TX, Multifamily Section 8 Program, Subsidized Unsupported Tenants and Uninspected Units
Housing
- Status2019-FW-1003-001-AOpenClosed$1,054,150Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on December 22, 2020We recommend that the Southwest Region Director of Multifamily Housing require the Northline Point Apartments’ owner to support that the subsidies for 51 units without annual physical inspections, without required EIV reports, or missing files were eligible and accurate or repay HUD $1,054,150 for those subsidies. Repayment must be from nonproject funds.
- Status2019-FW-1003-001-BOpenClosedClosed on October 21, 2020
We recommend that the Southwest Region Director of Multifamily Housing require the Northline Point Apartments’ owner to use correct dates for tenants who move in or out of subsidized units or transfer to other units. The move-ins, move-outs, and transfers must be adequately documented and supported.
- Status2019-FW-1003-001-COpenClosedClosed on October 21, 2020
We recommend that the Southwest Region Director of Multifamily Housing require the Northline Point Apartments’ owner to ensure that form HUD-50059 transactions are properly coded and adequately document and support the transactions.
- Status2019-FW-1003-001-DOpenClosedClosed on October 21, 2020
We recommend that the Southwest Region Director of Multifamily Housing require the Northline Point Apartments’ owner to ensure that tenant income is properly verified and maintain EIV reports as required.
- Status2019-FW-1003-001-EOpenClosedClosed on October 21, 2020
We recommend that the Southwest Region Director of Multifamily Housing require the Northline Point Apartments’ owner to perform and document annual inspections as required.
- Status2019-FW-1003-001-FOpenClosedClosed on October 21, 2020
We recommend that the Southwest Region Director of Multifamily Housing require the Northline Point Apartments’ owner to implement appropriate controls to ensure that tenants are eligible, housing assistance subsidies are accurate, tenants are properly moved and transferred, transactions are properly coded, units are inspected as required, and tenant files contain all required documentation.
- Status2019-FW-1003-001-GOpenClosedClosed on August 15, 2020
We also recommend that the Southwest Region Director of Multifamily Housing verify that the owner is providing oversight to its onsite staff and its recently implemented quality control procedures are working as designed and in accordance with HUD requirements.
2019-KC-0001 | April 11, 2019
FHA Improperly Paid Partial Claims That Did Not Reinstate Their Related Loans
Housing
- Status2019-KC-0001-001-AOpenClosed$2,342,833Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on November 30, 2020Take corrective action against lenders for 43 improper partial claims totaling $2.3 million that did not reinstate the delinquent loans, to include repayment of the partial claims where appropriate. This amount excludes $336,699 for four partial claims that have already been repaid (see appendix D).
- Status2019-KC-0001-001-BOpenClosed$27,100,000Funds 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.
Design controls to protect the insurance fund from improper partial claims that did not reinstate the loans to put $27.1 million to better use.
- Status2019-KC-0001-001-COpenClosedClosed on July 09, 2021
Update the FHA-HAMP guidance, clarifying that upon application of the partial claim funds, the mortgage must be fully reinstated with no unpaid amounts.
2019-DP-0003 | March 17, 2019
Review of Information Systems Controls Over FHA
Housing
- Status2019-DP-0003-001-AOpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
Closed on August 05, 2019The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2019-DP-0003-001-BOpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
Closed on August 05, 2019The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2019-DP-0003-002-AOpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
Closed on August 13, 2019The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2019-DP-0003-002-BOpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
Closed on August 05, 2019The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2019-DP-0003-002-COpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
Closed on August 05, 2019The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2019-DP-0003-003-AOpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
Closed on August 05, 2019The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2019-DP-0003-003-BOpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
Closed on August 05, 2019The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.
- Status2019-DP-0003-004-AOpenClosedSensitiveSensitive
Sensitive information refers to information that could have a damaging import if released to the public and, therefore, must be restricted from public disclosure.
Closed on August 13, 2019The OIG has determined that the contents of this recommendation would not be appropriate for public disclosure and has therefore limited its distribution to selected officials.