HUD Did Not Conduct Rulemaking or Develop Formal Procedures for Its Single-Family Note Sales Program
Develop and implement formal procedures and guidance for the note sales program.
Open Recommendation
HUD Did Not Ensure That Lenders Properly Processed Voluntary Terminations of Insurance Coverage on FHA Loans and Disclosed All Implications of the Terminations to the Borrowers
Investigate the 14 loans with unpaid mortgage amounts totaling $3,035,819, and require the lenders to obtain the borrowers consent, reinstate the insurance coverage, or take other action as appropriate given the facts of each particular loan.
Open Recommendation
HUD Did Not Ensure That Lenders Properly Processed Voluntary Terminations of Insurance Coverage on FHA Loans and Disclosed All Implications of the Terminations to the Borrowers
Remind lenders that voluntary termination is not the correct termination type to record third-party sales and that borrower consent is required to terminate insurance, even if the loans are indemnified.
Open Recommendation
HUD Did Not Ensure That Lenders Properly Processed Voluntary Terminations of Insurance Coverage on FHA Loans and Disclosed All Implications of the Terminations to the Borrowers
Improve its procedures for detecting and sanctioning improper voluntary terminations.
Open Recommendation
HUD Did Not Ensure That Lenders Properly Processed Voluntary Terminations of Insurance Coverage on FHA Loans and Disclosed All Implications of the Terminations to the Borrowers
Update Handbook 4000.1 to require the voluntary termination of insurance consent form to include an explanation that voluntary termination differs from mortgage insurance premium cancellation and the disclosure of any outstanding partial claims to put $285,215 to better use.
Open Recommendation
HUD Did Not Fully Comply With the Payment Integrity Information Act of 2019
For the MF-RAP, PIH-TRA, and CPD-HIM programs, ensure that the program's improper payments rate estimates adequately test for and include improper payments of Federal funding that are made by State, local, and other organizations administering these programs and adequately disclose any limitations Read More
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Servicers Properly Engaged in Loss Mitigation
Revise servicing review and monitoring policies and procedures to emphasize increased controls on reviewing claim loans showing that no loss mitigation evaluation occurred. Revising the policies and procedures would reduce the risk to HUD and result in a projected $120,902,564 in funds to be put Read More
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Servicers Properly Engaged in Loss Mitigation
Develop and implement policies and procedures to ensure that the Office of Single Family Asset Management and Office of Lender Activities and Program Compliance communicate the results of their servicing reviews to each other.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Servicers Properly Engaged in Loss Mitigation
Update and revise policies and procedures, including reinforcement of guidance (for example, mortgagee letters, notifications to servicers, or training) to ensure that servicers accurately report the status of delinquent loans to HUD.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Servicers Properly Engaged in Loss Mitigation
Require indemnification for the 26 loans that had significant servicing deficiencies. In these cases, the loss to HUD was $1,673,117 (appendixes A and D).
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Servicers Properly Engaged in Loss Mitigation
Reinforce existing guidance (such as mortgagee letters, notifications to servicers, and training) to servicers to ensure that they engage in required loss mitigation.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Servicers Properly Engaged in Loss Mitigation
Require that the servicers with significant and other deficiencies revise and update their policies and procedures, as necessary, to ensure that they comply with HUD requirements and guidance on loss mitigation evaluation.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Grantees Submitted Accurate Tribal Enrollment Numbers for Program Funding
Update the program’s information reporting requirements on form HUD-4117 to ensure that grantees report tribal enrollment numbers annually regardless of whether there are changes or corrections.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Grantees Submitted Accurate Tribal Enrollment Numbers for Program Funding
Revise form HUD-4117 to include certification and false claim statements that hold grantees responsible for reporting accurate tribal enrollment numbers to HUD annually.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Grantees Submitted Accurate Tribal Enrollment Numbers for Program Funding
Develop and implement policies and procedures to assist in formal challenging of grantees’ reporting tribal enrollment numbers in accordance with applicable requirements.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Grantees Submitted Accurate Tribal Enrollment Numbers for Program Funding
Issue guidance to grantees on procedures to ensure accurate reporting of tribal enrollment numbers.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Partial Claim Notes for FHA Loans Were Properly Tracked for Future Collection
Board 47 partial claim notes that were not boarded into SMART, resulting in funds to be put to better use in the amount of $716,061.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Partial Claim Notes for FHA Loans Were Properly Tracked for Future Collection
Coordinate with the Deputy Assistant Secretary for Finance and Budget to board 350 manually paid partial claims that were not boarded into SMART, resulting in funds to be put to better use in the amount of $2,297,706.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Partial Claim Notes for FHA Loans Were Properly Tracked for Future Collection
Remove 24 duplicate partial claim note entries from SMART, resulting in funds to be put to better use in the amount of $697,354.
Open Recommendation
HUD Did Not Have Adequate Controls To Ensure That Partial Claim Notes for FHA Loans Were Properly Tracked for Future Collection
Obtain the missing mortgage documents for 33 loans and the missing note documents for 40 loans, totaling $644,767 in partial claim notes, and require any unrecorded mortgage documents to be recorded at the appropriate county’s office to ensure that HUD’s interests are protected. For any missing Read More
Open Recommendation