The U.S.

HUD OIG is reviewing HUD's corrective actions in response to four specific recommendations made in audit reports 2012-PH-0004, 2013-PH-0002, 2014-PH-0001, and 2015-PH-0004.  Our prior audits showed that HUD’s controls did not always ensure that HECM loan borrowers complied with program residency requirements.

HUD OIG is reviewing HUD’s Home Equity Conversion Mortgage (HECM) program.  HUD’s HECM program allows elderly homeowners to borrow against their home equity without requiring repayment of the loan until the homeowners die, move, or fail to comply with certain requirements.  HUD has guaranteed more than 1 million HECM loans as of June 30, 2020.

HUD OIG is auditing HUD’s National Servicing Center’s (NSC) oversight of assigned home equity conversion mortgage (HECM) loan servicing by one of its contractors.  We selected the oversight of loan servicing based on two hotline complaints alleging inadequate servicing by the contractor.