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Report File
Date Issued
Submitting OIG
Department of Housing and Urban Development OIG
Other Participating OIGs
Department of Housing and Urban Development OIG
Agencies Reviewed/Investigated
Department of Housing and Urban Development
Components
Federal Housing Administration (FHA)
Report Number
2022-PH-0801
Report Description

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), completed a corrective action verification (CAV) of recommendations from four prior home equity conversion mortgage (HECM) audit reports.  The CAV was initiated because protecting the Federal Housing Administration (FHA) mutual mortgage insurance fund is one of HUD’s top management challenges.  The prior audits determined that HUD lacked controls to prevent HECM borrowers from violating principal residency requirements.  The CAV objectives were to determine whether HUD implemented adequate corrective actions in response to (1) recommendation 1B from audit report 2012-PH-0004, (2) recommendation 1B from audit report 2013-PH-0002, (3) recommendation 1B from audit report 2014-PH-0001, and (4) recommendation 1C from audit report 2015-PH-0004.  We found that HUD implemented the agreed-to corrective action for one recommendation, did not implement the ongoing corrective action for one recommendation, and did not implement corrective actions for two recommendations.

Report Type
Audit
Agency Wide
Yes
Number of Recommendations
0
Questioned Costs
$0
Funds for Better Use
$0
Report updated under NDAA 5274
No

Open Recommendations

This report has 1 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
2022-PH-0801-001-A No $0 $0

We recommend that the Office of Single Family Housing coordinate its efforts with the Office of Public and Indian Housing and the Office of Multifamily Housing Programs to further ensure that appropriate controls are in place to prevent HECM borrowers from violating principal residency requirements.

Department of Housing and Urban Development OIG

United States