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HECM Corrective Action Verification Review

HUD OIG is reviewing HUD's corrective actions in response to four specific recommendations made in audit reports 2012-PH-0004, 2013-PH-0002, 2014-PH-0001, and 2015-PH-0004.  Our prior audits showed that HUD’s controls did not always ensure that HECM loan borrowers complied with program residency requirements.  The audits included a recommendation to prevent and mitigate instances of borrowers violating the principal residency requirements.   The objective of our audit is to determine whether HUD's actions to address the recommendations were adequate.

Contaminated Sites Pose Potential Health Risks to Residents at HUD-Funded Properties

The West Calumet Housing Complex (WCHC), located in East Chicago, IN, was a public housing development that opened in 1972 on top of a former lead smelting plant.  HUD and other agencies missed multiple opportunities to identify site contamination at WCHC.  As a result, WCHC residents continued living in unsafe conditions for decades, and inadequate oversight led to the lead poisoning of children in WCHC.  Between 2005 and 2015, a child living in WCHC had nearly a three times greater chance of having elevated blood lead levels than children living in other areas

FHA Insured $940 Million in Loans for Properties in Flood Zones Without the Required Flood Insurance

The U.S. Department of Housing and Urban Development, Office of Inspector General, has completed its audit of Federal Housing Administration (FHA)-insured loans originated in calendar year 2019.  Our audit objective was to determine whether FHA insured loans that were not eligible for insurance because they did not have the required flood insurance coverage.

Interim Audit Memorandum – The HUD Single Family Insurance Operations Division Should Take Additional Action To Inform Homeowners of Changes to Its FHA Refund Process Resulting From the COVID-19 Pandemic

We initiated an audit of the U.S. Department of Housing and Urban Development’s (HUD) oversight of Federal Housing Administration (FHA) refunds to determine whether HUD appropriately, effectively, and efficiently tracked, monitored, and issued FHA refunds owed to homeowners with terminated loans. During the audit field work, the Coronavirus 2019 (COVID-19) pandemic began and as a result, we developed a second, more urgent audit objective to determine how COVID-19 affected policies, procedures, and distribution of FHA refunds and whether HUD’s response was appropriate.

Some Mortgage Loan Servicers’ Websites Continue to Offer Information about CARES Act Loan Forbearance That Could Mislead or Confuse Borrowers, or Provide Little or no Information at all

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG) conducted this study to follow up on information we shared previously regarding what information servicers of mortgage loans insured by Federal Housing Administration (FHA) are providing to borrowers regarding forbearance options available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).