WASHINGTON – Richard Cunningham, 55, a former D.C. Housing Authority employee turned real estate developer residing in the District of Columbia, pleaded guilty today in U.S. District Court in connection with a scheme to defraud private mortgage lenders of more Read More

HUD OIG is reviewing a residential care facility in New York City. The operator of the facility is a not-for-profit entity which manages a skilled nursing facility and has a reported unpaid principal mortgage balance of more than $7 million as of December 31, 2025. Our audit objective is to Read More

ATLANTA - Tracy Jones, a former Senior Vice President at the Atlanta Housing Authority, has been sentenced to prison and ordered to pay restitution for a scheme to fraudulently collect Section 8 housing assistance payments for her own rental property and family members, making fraudulent Read More

Determine and document in iREMS the reasons that the borrowers did not make the mortgage payments and the specific steps HUD is taking to address the borrowers’ failure to make mortgage payments for all failures to make mortgage payments listed in borrowers’ audited financial statements.

We audited the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) Claims Without Conveyance of Title (CWCOT) program.  We selected this review to assist HUD in recovering improper payments and to reduce the risk of losses to the FHA insurance fund. The Read More

We conducted an audit on the effectiveness of the U.S. Department of Housing and Urban Development’s (HUD) Home Equity Conversion Mortgage (HECM) program’s Life Expectancy Set Asides (LESA).  The LESA is a set aside portion of the HECM mortgage that makes property tax, hazard insurance, and Read More

HUD OIG is reviewing a residential care facility in New York. This facility owns and manages a long-term care facility, senior apartment residence, and retirement community programs and has a reported unpaid principal mortgage balance of more than $8 million as of December 31, 2025. Our audit Read More

We audited the U.S. Department of Housing and Urban Development (HUD), Office of Residential Care Facilities’ (ORCF), oversight of Section 232 residential care facilities’ mortgage insurance program.  We performed this audit because HUD-insured residential care facility loan defaults were Read More

We audited the Government National Mortgage Association’s (Ginnie Mae) management of its portfolio of federally guaranteed mortgage-backed securities (MBS).  We initiated this audit because of our internal monitoring of the Ginnie Mae portfolio as well as the issuance of a Financial Stability Read More

Orlando, FL –A grand jury has returned a federal indictment charging Jason Morales (44, Chagrin Falls, Ohio) with six counts of bank fraud. If convicted, Morales faces a maximum penalty of 30 years in federal prison on each count. U.S. Attorney Gregory W. Kehoe made the announcement.According to Read More

HUD OIG is auditing Federal Housing Administration (FHA)-Insured Single Family loans issued to FHA borrowers with delinquent federal tax debt.  This audit will include forward and reverse mortgages that received FHA insurance between January 1, 2025, and December 31, 2025.  Our audit Read More

HUD OIG is auditing an Ohio nationwide lender that originates and underwrites FHA single family loans. This review will focus on more than 3,500 loans closed totaling approximately $970 million. Our objective is to determine whether the lender followed FHA rules and regulations for assets, income, Read More

We are initiating an audit related to FHA single family early payment default underwriting. An early payment default refers to mortgages that become 60 Days delinquent within the first six payments; the immediacy of these defaults may reflect a defect in the underwriting standards. The objective of Read More

We audited the U.S. Department of Housing and Urban Development’s (HUD) Office of Single Family Housing’s efforts to increase the supply of affordable housing.  Our audit objective was to determine whether HUD met its intended outcome to increase the supply of affordable housing to owner- Read More

HUD OIG is auditing a nationwide lender headquartered in the State of Wisconsin that originates and underwrites FHA single family loans. This review will focus on more than 3,700 loans closed totaling approximately $1 billion. Our objective is to determine whether the lender followed FHA rules and Read More

Consider enhancing the SMART system, by adding fields (a) requiring FHA’s loan servicing contractor to enter the amount on the original mortgage and promissory note and (b) calculating the difference between the partial claim amount in SMART and the amount entered from the documents.

Implement comprehensive controls to (a) identify all Single Family partial claims related to terminated first mortgages, (b) update the system record of partial claims that will become due and payable when the refinanced mortgages are terminated, and (c) remove partial claims related to terminated Read More

Develop a process to (1) monitor receipt of original first notes and mortgages and recorded assignments, (2) follow up with mortgagees who fail to submit documents by the required deadline, and (3) initiate repurchase requests for HECM mortgagees who fail to meet assignment requirements.