Reassess the model design that was implemented to avoid the double counting of the cash flows for HECM mortgages in the LLG cash flow and ROA models and perform the following: (1) determine whether there are alternative methodologies that will not result in the exclusion of cash flows in both models, (2) document the basis of the selected methodology, and (3) determine the impact and risk of the selected methodology.
2019-FO-0002 | November 13, 2018
Audit of the Federal Housing Administration’s Financial Statements for Fiscal Years 2018 and 2017 (Restated)
Housing
- Status2019-FO-0002-001-EOpenClosedClosed on September 23, 2019
- Status2019-FO-0002-001-FOpenClosedClosed on March 26, 2019
Restate the fiscal year 2017 financial statements to correct the impact of using the improper discounting methodology in the HECM ROA model in fiscal year 2017.
2018-CF-1801 | March 22, 2018
Final Civil Action – MetLife Home Loans, LLC, and a Borrower’s Son Settled Allegations of Failing to Comply with HUD’s Federal Housing Administration HECM Loan Requirements
General Counsel
- Status2018-CF-1801-001-AOpenClosed$4,000Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on March 23, 2018Acknowledge that the attached settlement agreement for $4,000 represents an amount due HUD from MetLife.
- Status2018-CF-1801-001-BOpenClosed$95,769Funds Put to Better Use
Recommendations that funds be put to better use estimate funds that could be used more efficiently. For example, recommendations that funds be put to better use could result in reductions in spending, deobligation of funds, or avoidance of unnecessary spending.
Closed on June 17, 2025Enforce the indemnification agreement in the attached settlement agreement to prevent an estimated $95,769 loss to HUD. This represents an amount due HUD from MetLife for indemnifying and holding HUD harmless for any and all losses HUD incurs or has incurred in connection with FHA loan number 137-4740973.
- Status2018-CF-1801-001-COpenClosed$1,500Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on August 06, 2018Acknowledge that the attached settlement agreement for $1,500 represents an amount due HUD from the borrower’s son.
2018-FO-0003 | February 11, 2018
Audit of the Federal Housing Administration’s Financial Statements for Fiscal Years 2017 and 2016 (Restated)
Housing
- Status2018-FO-0003-001-BOpenClosedClosed on September 30, 2019
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 model’s use (operational procedures). Based on this review, FHA should make adjustments as needed to the model documentation. At a minimum, these adjustments should include appropriate actions taken to address model documentation deficiencies cited in our report.
- Status2018-FO-0003-001-COpenClosedClosed on September 30, 2019
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.
2017-CF-1804 | August 20, 2017
Final Civil Action: Financial Freedom, a Division of CIT Bank, N.A., Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Servicing Requirements for HECM Claims
General Counsel
- Status2017-CF-1804-001-AOpenClosed$41,000,000Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on August 21, 2017Acknowledge that $41 million of the $89,274,944 in the attached settlement represents an amount due HUD, less DOJ’s civil debt collection fees.