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We audited Flat Branch Mortgage, Inc., to evaluate its quality control (QC) program for originating and underwriting Single Family FHA-insured loans. Our audit covered the period October 2020 through September 2022.
HUD OIG is auditing HUD’s FHA Claims Without Conveyance of Title (CWCOT) program, which is a disposition option for foreclosed FHA loans that allows third-party sales as an alternative to conveyance of the property to HUD. During fiscal year 2024, the CWCOT program had 11,285 claims totaling more than $419 million. Our audit objective is to assess whether HUD is appropriately demanding and collecting improper payments for CWCOT loans.
HUD OIG is auditing the National Servicing Center's partial claims tracking and collection. The FHA partial claim is a loss mitigation tool that helps borrowers keep their homes by advancing funds on behalf of the borrowers to reinstate delinquent FHA-insured mortgages. The objective of our audit is to determine whether the NSC serviced all due and payable partial claims in accordance with HUD rules and regulations.
We audited the HUD Office of Housing Counseling to assess its processes for achieving its goal to advance homeownership through prepurchase and postpurchase homeownership counseling, including its use of performance metrics and the collection and use of outcome data. We selected this review because housing counseling plays a significant role in improving housing outcomes for home buyers, homeowners, and renters.HUD’s Office of Housing Counseling collects data related to housing counseling activity from its approved housing counseling agencies. It did not, however, u
We audited loanDepot.com to evaluate its quality control (QC) program for originating and underwriting Single Family Federal Housing Administration (FHA)-insured loans. We selected loanDepot for review based on its loan volume and delinquency rate and because its rate of self-reporting loans to HUD when it identified fraud, material misrepresentations, and other material findings that it could not mitigate was below average for more than a 5-year period. We found that loanDepot’s QC program for originating and underwriting FHA-insured loans was not sufficient.
We performed an audit of CMG Mortgage, Inc., to evaluate its quality control (QC) program for originating and underwriting Single Family Federal Housing Administration (FHA)-insured loans. We selected CMG for review based on its loan volume and delinquency rate and because its rate of self-reporting loans to HUD when it identified fraud, material misrepresentations, and other material findings that it could not mitigate was below average for more than a 5-year period.We found that CMG’s QC program for originating and underwriting FHA-insured loans was not sufficient. 
HUD OIG is auditing HUD's efforts to increase the supply of affordable housing. To increase the affordable housing supply, HUD's Office of Single Family expanded the exclusive listing period to 30 days to increase the time owner-occupants, HUD-approved nonprofits, and governmental entities can view and bid on properties without competing with investor purchasers.
HUD OIG is conducting an audit of HUD’s HECM Life Expectancy Set Asides within the Office of Housing. In 2015, HUD set a requirement for some HECM borrowers to maintain a Life Expectancy Set Aside to pay for future property taxes, insurance premiums, and flood insurance on behalf of the borrower. Our objective is to determine if HUD’s HECM Life Expectancy Set Aside calculations are meeting program goals.
HUD OIG is auditing barriers impacting borrowers who were attempting to avoid FHA foreclosures. There were 85,000 FHA foreclosures started in 2022 following the conclusion of the COVID-19 foreclosure moratorium. Our audit objective is to assess the challenges facing FHA borrowers trying to avoid foreclosure.
HUD OIG is auditing the changing hazard insurance market on FHA borrowers and FHA. Our review will involve the review of hazard insurance cost data from January 1, 2018, through July 31, 2024, in Florida, Texas, Louisiana, and California overlayed with FEMA high-risk disaster maps and risk exposure associated with FHA insured homes in those states. Our objective is to assess the impact of the changing hazard insurance market on FHA borrowers and the Mutual Mortgage Insurance Fund.
