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Date Issued
2018-KC-0001 | March 25, 2018

FHA Insured $1.9 Billion in Loans to Borrowers Barred by Federal Requirements

Housing

  •  
    Status
      Open
      Closed
    2018-KC-0001-001-A
    $1,905,340,944
    Funds 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.

    Priority
    Priority

    We believe these open recommendations, if implemented, will have the greatest impact on helping HUD achieve its mission to create strong, sustainable, inclusive communities and quality affordable homes for all.

    Develop a method for using the Do Not Pay portal during the underwriting process to identify delinquent child support and delinquent Federal debt to prevent future FHA loans to ineligible borrowers to put $1.9 billion to better use.

    Status

    The Office of Housing has approved prioritization of funding for Integration between the Treasury’s Do Not Pay portal and HUD’s Computerized Homes Underwriting Reporting System (CHUMS). Funding was allocated to the CHUMS IT contractor on January 26, 2024, to integrate Treasury’s Do Not Pay system with CHUMS, and the IT development project was kicked off the week of February 5, 2024. As of July 2025, the CHUMS Memorandum of Understanding (MOU) and Interconnection Security Agreement (ISA) with DNP is fully signed. However, the System of Records Notice (SORN) is under review with OMB. HUD's Office of Privacy is in the process of reaching out to OMB to request comments or permission to publish. The anticipated completion date of the CHUMS interface with DNP is December 31, 2025.

    Analysis

    To fully address this recommendation, HUD must provide evidence that it has implemented applicant screening against the Do Not Pay portal to identify delinquent child support and delinquent federal debt to prevent future FHA loans from going to ineligible borrowers.

    Implementation of this rule should result in HUD putting $1.9 billion to better use.

Displaying 1 - 1 of 1 Recommendations