Audit of FHA Claims Without Conveyance of Title Improper Payments

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.