U.S. flag

An official website of the United States government Here’s how you know

The .gov means it’s official.

Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you're on a federal government site.

The site is secure.

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.


The U.S. Department of Housing Urban Development (HUD), Office of Inspector General audited the Government National Mortgage Association’s (Ginnie Mae) process for identifying and removing uninsured single-family Federal Housing Administration loans from mortgage-backed securities (MBS) pools.  Our audit objective was to determine whether loans remained in Ginnie Mae MBS pools for 1 year or longer without the required mortgage insurance.

Ginnie Mae allowed at least 345 uninsured single-family loans valued at nearly $50 million to remain in its MBS pools for more than 1 year.  We reviewed a statistical sample of 85 of 363 pooled loans for which the U.S. Department of Housing and Urban Development’s systems showed no insurance endorsement date.  Eighty-three of the loans were uninsured more than 1 year after the lenders issued the related securities.

We recommend that Ginnie Mae (1) establish a maximum time that loans may remain pooled without insurance and (2) establish a process for requiring removal of pooled loans that remain uninsured at the maximum time  to put $49.3 million to better use.