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 Public and Indian Housing and Multifamily use of vacant units during previously Presidentially Declared Disasters and the COVID-19 declared Disaster, as well as PIH and Multifamily’s ability to place a waitlist preference for the homeless and how many homeless individuals had a 50058 or 50059 new move-in during the COVID pandemic.  Since the introduction of the CARES act, there has been an emphasis to review how HUD has reacted to the COVID-19 disaster.  HUD allocated $1 billion to keep America's homeless population safe.

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. The objective is to determine how HUD is tracking and responding to health and safety complaints associated with multifamily Section 8-assisted housing and how it ensures that property owners resolve the health and safety issues.

HUD OIG is auditing HUD's Section 8 Management Assessment Program (SEMAP).  HUD uses SEMAP to remotely measure the performance of the public housing agencies that administer the program.  Due to the COVID-19 pandemic, HUD will soon resume issuing new SEMAP scores   and the temporary moratorium on SEMAP provides the OIG with a rare opportunity to assess the program as a snapshot in time.

HUD OIG is auditing HUD's oversight of lead based paint remediation.  Lead-based paint hazards present a health risk to tenants, particularly children, and the effects of lead poisoning may permanently alter the lives of those exposed.  The objective is to determine whether HUD has adequate oversight of lead-based paint remediation in public housing.

HUD OIG is auditing HUD’s Public and Indian Housing Office’s oversight of the Housing Choice Voucher Program, specifically the voucher utilization and reallocation activity.  HUD’s Housing Choice Voucher program provides housing subsidies to counteract the lack of affordable housing for families in need.  Underutilization of vouchers results in fewer families receiving housing assistance each year than could be served with available resources. The audit objective is to assess HUD’s oversight of the utilization and reallocation of Housing Choice Program Vouchers.   

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.