This inaugural disaster recovery biannual report and subsequent reports will provide curated information regarding the U.S. Department of Housing and Urban Development (HUD) and its grantees’ use of the more than $109 billion in disaster recovery funds approved by Congress since the 2001 World Trade Center attack, as well as information on new or completed HUD OIG oversight work related to HUD’s disaster recovery program.HUD’s grantees...

HUD OIG is auditing the National Servicing Center's partial claims tracking and collection. The FHA partial claim is a loss mitigation tool that helps borrowers keep their homes by advancing funds on behalf of the borrowers to reinstate delinquent FHA-insured mortgages. The objective of our audit is to determine whether the NSC serviced all due and payable partial claims in accordance with HUD rules and regulations. 

HUD OIG is auditing HUD’s FHA Claims Without Conveyance of Title (CWCOT) program, which is a disposition option for foreclosed FHA loans that allows third-party sales as an alternative to conveyance of the property to HUD. During fiscal year 2024, the CWCOT program had 11,285 claims totaling more than $419 million. Our audit objective is to assess whether HUD is appropriately demanding and collecting improper payments for CWCOT loans....

We audited the HUD Office of Housing Counseling to assess its processes for achieving its goal to advance homeownership through prepurchase and postpurchase homeownership counseling, including its use of performance metrics and the collection and use of outcome data.  We selected this review because housing counseling plays a significant role in improving housing outcomes for home buyers, homeowners, and renters.HUD’s Office of...

The U.S. Department of Housing and Urban Development (HUD) administers billions in presidentially declared disaster recovery grants through its Community Development Block Grant Disaster Recovery program.  We audited five non-State grantees to assess whether they are on track to spend their remaining grant funds on eligible activities that benefit program participants within a reasonable amount of time.  We also wanted to...

We audited loanDepot.com to evaluate its quality control (QC) program for originating and underwriting Single Family Federal Housing Administration (FHA)-insured loans.  We selected loanDepot for review based on its loan volume and delinquency rate and because its rate of self-reporting loans to HUD when it identified fraud, material misrepresentations, and other material findings that it could not mitigate was below average for...

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) is auditing the use of Community Development Block Grant Disaster Recovery (CDBG-DR) funds as non-Federal match for the Federal Emergency Management Agency’s (FEMA)Public Assistance Program.  Our objectives are to determine whether four CDBG-DR grantees made improper payments and whether the Office of Community Planning and...

We performed an audit of CMG Mortgage, Inc., to evaluate its quality control (QC) program for originating and underwriting Single Family Federal Housing Administration (FHA)-insured loans.  We selected CMG for review based on its loan volume and delinquency rate and because its rate of self-reporting loans to HUD when it identified fraud, material misrepresentations, and other material findings that it could not mitigate was below...

We audited the project activity status for 12 grantees that received funds under the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) National Disaster Resilience (NDR) grant to determine whether the grantees have accomplished or are on track to accomplish the goals of the activities outlined in their action plans. We found that NDR grantees should be able to accomplish their...

HUD OIG is conducting an audit of HUD’s HECM Life Expectancy Set Asides within the Office of Housing. In 2015, HUD set a requirement for some HECM borrowers to maintain a Life Expectancy Set Aside to pay for future property taxes, insurance premiums, and flood insurance on behalf of the borrower. Our objective is to determine if HUD’s HECM Life Expectancy Set Aside calculations are meeting program goals. 

HUD OIG is auditing HUD's efforts to increase the supply of affordable housing. To increase the affordable housing supply, HUD's Office of Single Family expanded the exclusive listing period to 30 days to increase the time owner-occupants, HUD-approved nonprofits, and governmental entities can view and bid on properties without competing with investor purchasers. Our audit objective is to determine whether HUD met intended outcomes to...

We reviewed the Puerto Rico Department of Housing’s (PRDOH) Electrical Power System Enhancements and Improvements programs to provide (1) background and funding information, (2) an update on the status of the programs and their progress, and (3) other relevant program information for interested stakeholders including Congress and the public. The U.S. Department of Housing and Urban Development (HUD) provided its grantee, PRDOH, $1...

HUD OIG is auditing the changing hazard insurance market on FHA borrowers and FHA. Our review will involve the review of hazard insurance cost data from January 1, 2018, through July 31, 2024, in Florida, Texas, Louisiana, and California overlayed with FEMA high-risk disaster maps and risk exposure associated with FHA insured homes in those states. Our objective is to assess the impact of the changing hazard insurance market on FHA...

We audited HUD’s management of its FHA appraiser roster to determine whether the roster was accurate and reliable.  We selected this review because a prior audit identified weaknesses related to roster oversight and because this topic aligns with HUD’s strategic goals related to promoting home ownership and strengthening its internal capacity, as well as increased interest in the appraisal process.  HUD’s FHA appraiser...

HUD OIG is auditing barriers impacting borrowers who were attempting to avoid FHA foreclosures. There were 85,000 FHA foreclosures started in 2022 following the conclusion of the COVID-19 foreclosure moratorium. Our audit objective is to assess the challenges facing FHA borrowers trying to avoid foreclosure.  

HUD OIG is auditing HUD’s monitoring of its Field Service Management (FSM) property preservation and protection services. Our review will involve the assessment of 80 monitoring sample items and cover the period of November 1, 2022, through October 31, 2023. The objective of our audit is to determine if HUD adequately monitored its Field Service Management contractors’ property preservation and protection services. 

We audited the Puerto Rico Housing Finance Authority’s (PRHFA) Homebuyer Assistance Program (HBA), which provides eligible applicants with closing costs and downpayment assistance for the purchase of a primary residence.  The U.S. Department of Housing and Urban Development (HUD) provided its grantee, the Puerto Rico Department of Housing (PRDOH), $495 million in Community Development Block Grant Disaster Recovery funds for HBA...

In January 2017, HUD awarded the City $141.2 million in Community Development Block Grant National Disaster Resilience grant funding for disaster resilience. HUD designed the grant to give states flexibility in planning program activities and help state and local communities recover from past disasters, while also improving their infrastructure to withstand future extreme events through strategic community investments.  The City...

HUD OIG is auditing public housing authorities' controls over source of income discrimination. As of February 2023, 20 states have passed laws prohibiting discrimination against voucher holders by officially designing source of income as a protected class. The audit objective is to assess the extent to which public housing authorities have implemented controls to prevent and combat source of income discrimination. 

HUD OIG is auditing HUD’s Office of Housing Counseling. HUD’s 2022-2026 Strategic Plan identified housing counseling as one of the strategies it would employ to achieve its strategic objective to advance sustainable homeownership. Our objective is to assess HUD’s processes for achieving its goal through pre- and post-purchase homeownership counseling, including the assessment of its use of performance metrics and the collection and use...