In accordance with the Chief Financial Officers Act of 1990, as amended, we are required to annually audit the consolidated financial statements of the U.S. Department of Housing and Urban Development (HUD) and the stand-alone financial statements of the Federal Housing Administration and the Government National Mortgage Administration (Ginnie Mae). Our objective was to express an opinion on the fairness of HUD’s consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) applicable to the Federal Government. This report presents our independent auditor’s report on HUD’s fiscal years 2018 and 2017 (restated) consolidated financial statements and reports on internal controls and compliance with laws and regulations. We expressed a disclaimer of opinion on HUD’s fiscal years 2018 and 2017 (restated) consolidated financial statements because of the significant effects of certain unresolved audit matters, which restricted our ability to obtain sufficient, appropriate evidence to express an opinion. These unresolved audit matters relate to (1) the $3 billion in nonpooled loan assets from Ginnie Mae’s stand-alone financial statements that we could not audit due to inadequate support and (2) noncompliant GAAP accounting for assets and budgetary resources. This report contains five material weaknesses, four significant deficiencies, and five instances of noncompliance with applicable laws and regulations. Additional details on the material weaknesses, significant deficiencies, and instances of noncompliance with laws and regulations and related recommendations are included in separate audit reports entitled (1) Additional Details To Supplement Our Fiscal Years 2018 and 2017 (Restated) U.S. Department of Housing and Urban Development Financial Statement Audit, audit report 2019-FO-0003; (2) Audit of the Federal Housing Administration Financial Statements for Fiscal Years 2018 and 2017 (Restated), audit report 2019-FO-0002; and (3) Audit of the Government National Mortgage Association’s Financial Statements for Fiscal Years 2018 and 2017 (Restated), audit report 2019-FO-0001. We make no recommendations in this report because it is supplemented by three separate reports as described above to provide specific recommendations to HUD management.