HUD OIG is auditing the Office of Asset Sales' HUD-Held Vacant Loan Sale (HVLS) program, which is another disposition option for defaulted FHA notes HUD uses to reduce losses and improve recoveries for FHA’s Mutual Mortgage Insurance Fund. In the HLVS 2022-2 part 1 sale, 703 loans were awarded to qualified mission-driven entities, representing $105.1 million in unpaid principal balance. The audit objective is to assess the extent to which HUD has ensured the achievement of its mission objectives for the HVLS 2022-2 part 1 loan sale.

HUD OIG is conducting a review of a California-based mortgage lender that originates and underwrites FHA single-family loans. Our objective is to evaluate the lender’s quality control program for originating and underwriting loans.

HUD OIG is conducting a review of a California-based mortgage lender that originates and underwrites FHA single-family loans. Our objective is to evaluate the lender’s quality control program for originating and underwriting loans.

HUD OIG is conducting a review of a Missouri-based mortgage lender that originates and underwrites FHA single-family loans. Our objective is to evaluate the lender’s quality control program for originating and underwriting loans.

HUD OIG is conducting a review of an Illinois-based mortgage lender that originates and underwrites FHA single-family loans. Our objective is to evaluate the lender’s quality control program for originating and underwriting loans.

HUD OIG is auditing the Office of Single Family Housing's FHA appraiser roster, which is the list of individuals approved to conduct valuations for FHA-insured properties. HUD’s appraiser roster is the foundation for these valuations and consists of approximately 40,000 different appraiser IDs. The audit objective is to determine whether the appraiser roster is accurate and contains only eligible appraisers.


 

HUD OIG is auditing the Office of Single Family Housing Federal Housing Administration (FHA) Resource Center.  The FHA Resource Center is a valuable and useful tool for consumers that provides answers to consumers' questions or concerns on a variety of topics, including housing discrimination.  Our objective is to assess whether the FHA Resource Center appropriately rerouted inquiries related to housing discrimination, including discrimination in appraisals, to HUD’s Office of Fair Housing and Equal Opportunity in accordance with its standard operating procedures.

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 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.

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.  The lessons learned from prior audits identify what actions HUD should take now to ensure program integrity and mitigate the risk of financial loss for COVID-19 related forbearance assistance and foreclosure moratorium related to single family loans.