Alpine First Preston Joint Venture II, LLC, Alpine, UT, Did Not Always Comply With Its Contract With HUD and Its Own Requirements for the Marketing and Sale of HUD-Owned Properties in the State of IL
Implement adequate procedures and controls to ensure that it properly monitors the listing brokers to ensure compliance with its contract. The procedures and controls should include but not limited to performing quality control reviews and supervisory review of its brokers, and maintaining Read More
Open Recommendation
Alpine First Preston Joint Venture II, LLC, Alpine, UT, Did Not Always Comply With Its Contract With HUD and Its Own Requirements for the Marketing and Sale of HUD-Owned Properties in the State of IL
Update its quality control plan to include the performance of physical inspections of the properties in its inventory.
Open Recommendation
Approximately 31,500 FHA-Insured Loans Did Not Maintain the Required Flood Insurance Coverage in 2020
Require lenders to provide evidence of sufficient flood insurance or execute indemnification agreements for the 21 loans in our statistical sample that did not have sufficient flood insurance at the time of our audit to put nearly $1.1 million to better use. (See appendix A.)
Open Recommendation
Approximately 31,500 FHA-Insured Loans Did Not Maintain the Required Flood Insurance Coverage in 2020
Develop a control to detect loans that did not maintain the required flood insurance to put $1.5 billion to better use by avoiding potential future costs to the FHA insurance fund from inadequately insured properties.
Corrective Action Taken
In November 2022, FHA published the Read More
Open Recommendation
Approximately 31,500 FHA-Insured Loans Did Not Maintain the Required Flood Insurance Coverage in 2020
Consult with the Office of General Counsel to review the language in the statutes, regulations, and handbooks and if warranted, make adjustments to the forward mortgage handbook to ensure consistency with the statute.
Open Recommendation
Approximately 31,500 FHA-Insured Loans Did Not Maintain the Required Flood Insurance Coverage in 2020
Consult with the Office of General Counsel to review the language in the statutes, regulations, and handbooks and if warranted, make adjustments to the HECM handbook to ensure consistency with the statute and regulation.
Open Recommendation
Assessing HUD Plans for Evaluating Urban Promise Zones and HUD Grant Programs Participating in Promise Zones
Complete all steps necessary for an effective evaluation effort.
Open Recommendation
Assessing HUD Plans for Evaluating Urban Promise Zones and HUD Grant Programs Participating in Promise Zones
Work with grant program offices to overcome reporting challenges. Ensure that grant program offices report OMB-requested data. Learn from and leverage results of participating grant programs.
Open Recommendation
Assessing HUD Plans for Evaluating Urban Promise Zones and HUD Grant Programs Participating in Promise Zones
Work with PD&R on an evaluation approach and design for the Promise Zone initiative. Ensure that OFPM has the appropriate resources for its new Communications and Data Analysis Division.
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Establish and implement an effective quality control process to prevent or detect model processing errors cited in our report and prevent other similar model processing errors in the future.
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Reevaluate FHA’s existing model documentation for single-family, HECM, and multifamily models to determine whether their current state is acceptable, so that it provides the intended users a thorough understanding of how the model works and also allows new users to assume responsibility for the Read More
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Review FHA’s existing model coding for single-family, HECM, and multifamily models and make necessary changes to make them consistent with industry’s best practices in model coding. At a minimum, FHA should implement actions to address model coding deficiencies cited in our report.
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Establish and implement policies and procedures for assessing and monitoring the reliability of the work performed by FHA’s modeling contractors.
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Revisit the model’s ability to predict future performance of the single-family portfolio, based on our concerns expressed in this report regarding relationships of certain variables (such as loan-to-value ratio and FICO scores to prepayment) that are not consistent with our expectations. FHA Read More
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Correct the impact of all the modeling errors that we identified in this report.
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Ensure that the $270.7 million identified as invalid obligations in fiscal year 2017 is deobligated as appropriate.
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Develop and implement policies, procedures, and controls to ensure that he obligation is recognized when the loan guarantee commitment or the direct loan obligation is made and the subsidy cost expense is recognized when the loan is endorsed for loan guarantees and when the loan is disbursed for Read More
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Develop and implement a reconciliation process to ensure that the information in various systems is consistent for all accounting events.
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Develop and implement (1) a methodology to estimate accrued liabilities for property contracts to account for expenses that had been incurred by contractors but not billed and (2) a process to ensure that an audit trail exists for identifying accruals in the general ledger.
Open Recommendation
Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Develop and implement policies and procedures to ensure that the reasonableness and appropriateness of the quarterly supplemental claims accrual estimation methodology is periodically reviewed.
Open Recommendation