DHMG’s Oversight of the Enterprises’ Compliance with Duty to Serve Requirements Was Not Fully Effective Due to Incomplete Evaluation Documentation and Outdated Guidance

Date Issued

Thursday, August 28, 2025

Submitting OIG

Federal Housing Finance Agency OIG

Agencies Reviewed/Investigated

Federal Housing Finance Agency

Report Number

AUD-2025-005

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 3 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
AUD-2025-005-1	No	$0	$0
FHFA's DHMG Deputy Director should review and update, as necessary, the design of all scoring templates to reflect current practices and provide clarity regarding what fields require completion.
AUD-2025-005-2	No	$0	$0
FHFA's DHMG Deputy Director should develop and implement written review and reconciliation procedures to ensure that all scoring template evaluations are complete, accurate, and correspond to the final qualitative impact scores used to rate the Enterprises’ annual Duty to Serve performance.
AUD-2025-005-3	No	$0	$0
FHFA's DHMG Deputy Director should revise internal written guidance for the oversight of the Enterprises’ compliance with Duty to Serve requirements to incorporate up-to-date practices that include the following: a. Review and approval procedures for assigning and documenting scores and ratings for evaluation of the Enterprises’ Plans and performance; b. Review and approval procedures to ensure that DHMG accurately calculates annual evaluation scores and ratings; c. Procedures for the practice and frequency of conducting routine meetings with the Enterprises and documenting and communicating results to relevant FHFA stakeholders; and d. Procedures for the documentation and submission of quarterly monitoring reviews to relevant FHFA stakeholders.