|HUD’s Measurement of Held Vacant Loan Sales (HVLS) Mission Objectives
|Protecting the Mortgage Insurance Funds
HUD OIG is auditing the Office of Asset Sales’ HUD-Held Vacant Loan Sales (HLVS) program, which is another disposition option for defaulted, formerly FHA single-family reverse mortgage loans owned and competitively auctioned by HUD to reduce losses and improve recoveries to FHA’s Mutual Mortgage Insurance Fund. The HLVS 2022-1 sale was held in December 2021 and included 1,605 settled loans with an unpaid loan balance of $398.6 million, with 50% percent of the loans sold to nonprofit organizations. Our audit objectives are to assess the extent to which HUD tracks and measures (1) its loan sale program’s success, and (2) its achievement of mission objectives as they relate to Biden-Harris Administration’s housing initiatives.