HUD OIG is evaluating the Offices of Public and Indian Housing and  Multifamily Housing Program’s policies for radon. Radon is the second leading cause of lung cancer after smoking, and it is the number one cause of lung cancer among non-smokers.

HUD OIG is evaluating  HUD’s efforts to identify and mitigate resident risks for its properties on or near Superfund National Priorities List (NPL) sites and non-NPL sites with lead contamination.  We initiated this evaluation due to the lead poisoning of residents in an East Chicago, IN, public housing complex and the possibility that residents in thousands of U.S. Department of Housing and Urban Development (HUD)-funded properties across the Nation face health risks because they are living on or near other contaminated sites.

HUD OIG has contracted with CliftonLarsonAllen LLP (CLA) to conduct the FHA financial statement audit for the fiscal year(s) ended September 30, 2020, to express an opinion on the financial statements, as well as to report any significant deficiencies and material weaknesses in internal control over financial reporting, and report on the results of their tests of compliance with laws, regulations, contracts, grant agreements, and other matters, if applicable.

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 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 auditing COVID-19 single family forbearance reporting. The audit will help HUD to determine how accurately the servicers are reporting the forbearance assistance offered to their customers. The audit will further enable HUD to adequately forecast the performance of its FHA loan portfolio in order to maintain an adequate capital ratio. The audit objective is to determine whether data available in HUD’s single family default monitoring system (SFDMS) is consistent with information maintained by loan servicers.

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.  The purpose of this research is to provide HUD information regarding lessons learned and risks identified in these prior audits that HUD should act on now to ensure program integrity and mitigate the risk of financial loss for COVID-19 related partial claims.  

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.  

HUD OIG is auditing HUD’s multifamily complaint intake and resolution activities.  In July 2019, an explosion occurred a multifamily property in Jacksonville, Florida, which resulted a fire injuring several people.  There have been concerns related to health and safety issues at this complex which appear to have gone unaddressed and may have led to the fire.