Housing | Office of Inspector General, Department of Housing and Urban Development

HUD's Efforts to Advance Homeownership Through Housing Counseling

HUD OIG is auditing HUD’s Office of Housing Counseling. HUD’s 2022-2026 Strategic Plan identified housing counseling as one of the strategies it would employ to achieve its strategic objective to advance sustainable homeownership. Our objective is to assess HUD’s processes for achieving its goal through pre- and post-purchase homeownership counseling, including the assessment of its use of performance metrics and the collection and use of counseling outcome data.

Opportunities Exist To Improve HUD’s FHA Resource Center’s Routing of Housing Discrimination Inquiries

We audited the U.S. Department of Housing and Urban Development (HUD), Office of Single Family Housing’s Federal Housing Administration (FHA) Resource Center’s handling of housing discrimination inquiries. We initiated the audit to assist HUD with ensuring that the FHA Resource Center (1) provided accurate and complete information on potential housing discrimination to its customers and (2) ensured that instances of potential housing discrimination were routed through the proper channels.

Transmittal of Independent Public Accountant's Audit Report on the Federal Housing Administration's Fiscal Years 2023 and 2022 Financial Statements

Develop corrective procedures to bring the HECM portfolio servicing current, initiate collection proceedings for due and payable loans, redeem the tax certificates for properties for which FHA lost its security interest, and implement a solution to monitor tax payments to prevent tax delinquencies and avoid FHA’s risk of loss in loan security interest.

Transmittal of Independent Public Accountant's Audit Report on the Federal Housing Administration's Fiscal Years 2023 and 2022 Financial Statements

Develop and enhance training for servicing the HECM portfolio.

Transmittal of Independent Public Accountant's Audit Report on the Federal Housing Administration's Fiscal Years 2023 and 2022 Financial Statements

Identify and remove all duplicate transactions from the accounting module and prevent future occurrences.

Transmittal of Independent Public Accountant's Audit Report on the Federal Housing Administration's Fiscal Years 2023 and 2022 Financial Statements

Record an adjusting entry to remove the duplicate $44 million from the gross HECM loans receivable balance as of September 30, 2023.

Transmittal of Independent Public Accountant's Audit Report on the Federal Housing Administration's Fiscal Years 2023 and 2022 Financial Statements

Consider accounting implications to the gross HECM loans receivable balance for the $20 million lost in security interests.

Transmittal of Independent Public Accountant's Audit Report on the Federal Housing Administration's Fiscal Years 2023 and 2022 Financial Statements

Develop and implement procedures to i) monitor the transfer of due and payable partial claims from NSC to the FOC for collection, ii) determine the financial statement impact of not referring due and payable partial claims to the FOC, and iii) decide when FHA will record a reclassification entry to accounts receivable for those due and payable partial claims that are not transferred to the FOC timely.

Transmittal of Independent Public Accountant's Audit Report on the Federal Housing Administration's Fiscal Years 2023 and 2022 Financial Statements

Develop a plan and a timeline that ensures all due and payable partial claims are transferred to the FOC, and subsequently processed by the FOC.

Audit of FHA’s Fiscal Years 2023 and 2022 Financial Statements

We contracted with the independent public accounting firm of CliftonLarsonAllen LLP (CLA) to audit the financial statements of FHA as of and for the fiscal years ended September 30, 2023 and 2022, and to provide reports on FHA’s (1) internal control over financial reporting and (2) compliance with laws, regulations, contracts, and grant agreements and other matters. Our contract with CLA required that the audit be performed in accordance with U.S.

Subscribe to Housing