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We initiated an audit of the U.S. Department of Housing and Urban Development’s (HUD) oversight of Federal Housing Administration (FHA) refunds to determine whether HUD appropriately, effectively, and efficiently tracked, monitored, and issued FHA refunds owed to homeowners with terminated loans. During the audit field work, the Coronavirus 2019 (COVID-19) pandemic began and as a result, we developed a second, more urgent audit objective to determine how COVID-19 affected policies, procedures, and distribution of FHA refunds and whether HUD’s response was appropriate. We determined that COVID-19 generally did not affect the Single Family Insurance Operations Division’s (SFIOD) FHA refund policies and procedures; however, the SFIOD did not fully notify homeowners of operational changes to its physical mail procedures, which potentially impacted its distribution of refunds. We issued this interim report to ensure HUD was made aware of the issues identified during its review and could act in a timely manner to address them. The audit prompted HUD to take immediate corrective action for all three recommendations, one of which was closed concurrently with the issuance of this memorandum and two that will be completed during audit resolution.