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HUD OIG is conducting an audit of COVID-19 loss mitigation. In the summer of 2021, FHA introduced new recovery loss mitigation options for borrowers exiting forbearance, which will provide a path to deep and sustained recovery for borrowers who were significantly impacted by the pandemic by reinstating their loans from a delinquent to current status.

HUD OIG is conducting a review of a nationwide mortgage servicing company that provides servicing and origination for FHA loans. In the summer of 2021, FHA introduced new recovery loss mitigation options for borrowers exiting forbearance, which will provide a path to deep and sustained recovery for borrowers who were significantly impacted by the pandemic by reinstating their loans from a delinquent to current status.

HUD OIG is auditing the risk to the FHA fund from uninsured flood damage. The objective of this audit is to determine whether borrowers of FHA-insured loans maintained proper flood insurance coverage. This audit will cover FHA-insured forward and reverse mortgages active throughout calendar year 2020.

HUD OIG is conducting a review of HUD's Office of Residential Care Facilities.  Media reports have shown that the COVID-19 virus impacted nursing homes nationwide.  Our audit objective is to determine the biggest challenges that nursing home owners face related to COVID-19 and whether they are prepared to meet their future financial obligations.

HUD OIG is auditing HUD's Office of Single-Family Housing - Federal Housing Administration (FHA) program partly in response to media reports which have highlighted instances when lenders did not properly administer the COVID-19 forbearance options.  The audit objective is to determine whether FHA insured borrowers properly received the CARES Act forbearance options.

HUD OIG is reviewing HUD's plans to reopen its offices to its employees. This work is in response to a Congressional request. The review objective is to determine whether HUD is following (1) its Resuming Normal Operations Guide, COVID-19 Response, Headquarters and Field Offices; (2) Federal, State, and local government and appropriate non-governmental guidance; and (3) best practices in reopening its offices to employees.

HUD OIG is researching prior audits of HUD’s Single Family Default Monitoring System to provide HUD information regarding lessons learned and risks identified in these prior audits.  The forbearances will result in increased claims filed against the insurance fund.

HUD OIG is  researching prior audits of HUD’s partial claims loss mitigation option.  On July 8, 2020, FHA issued Mortgagee Letter 2020-22 informing mortgagees the full suite of loss mitigations available to single family borrowers affected by the COVID-19 pandemic.

HUD OIG is auditing HUD’s oversight of Federal Housing Administration (FHA) refunds.  FHA insures mortgages to increase homeownership opportunities.  An upfront insurance premium, paid at the time of closing, is refundable if the loan ends early, whether through sale, foreclosure, or refinancing.  We received a hotline complaint describing roadblocks to obtaining refunds.