Federal Reports

Under the Commercial Crew Program, SpaceX and Boeing were selected to develop U.S.-based crew transportation capabilities that would be certified by NASA to meet human-rating requirements and begin routine flights to the International Space Station. The SpaceX Crew Dragon received its certification in 2020 and has flown 12 crewed missions to and from the Station since that time. The Boeing Starliner, however, is uncertified as its three flight tests have uncovered a significant number of unexpected issues with varying levels of mission risk that remain.

This memorandum presents the results of our limited review of the circumstances related to the loss incurred by the National Credit Union Share Insurance Fund (Share Insurance Fund) with respect to North Bay Credit Union (North Bay), Santa Rosa, California, chartered on January 1, 1948.

During the week of February 9, 2026, we performed a self-initiated audit at the Norfolk Local Processing Center (LPC), three delivery units serviced by the plant, and a fourth delivery unit in the Virginia District. The delivery units included the Norfolk Sorting and Delivery Center (S&DC) and Lynchburg, Suffolk, and Virginia Beach Main Post Offices (MPO).

We issued individual reports for the four delivery units and the LPC. We will also issue another report summarizing the results of our audits at all four delivery units with specific recommendations for management to address.

The audit team identified deficiencies in seven areas we reviewed affecting mail delivery and property conditions at the delivery unit

We audited the U.S Department of Housing and Urban Development (HUD) National Servicing Center’s (NSC) tracking and collection of FHA partial claims.  We initiated the audit to assess HUD’s implementation of the corrective actions from HUD OIG audit report 2016-KC-0001, HUD Did Not Collect an Estimated 1,361 Partial Claims Upon Termination of Their Related Federal Housing Administration (FHA)-Insured Mortgages; however, we determined based on a referral from HUD OIG’s Financial Audits Division that there was an issue with the collection of partial claims, and the corrective actions from the prior audit did not fix the condition.  Our objective was to determine whether the NSC serviced all due and payable partial claims in accordance with HUD rules, regulations, policies, and procedures.

We found HUD’s NSC did not service all due and payable partial claims in accordance with HUD rules, regulations, policies, and procedures.  Specifically, we identified that 74 of 81 statistically sampled FHA loan files involved servicing or collection discrepancies including missing loan documents, demand letters not being sent, and untimely delivery and upload of loan documents.  These conditions occurred because of an increased volume of partial claims and inadequate oversight of the Loan Servicing Contractor (LSC), including a lack of well-defined partial claims tracking and collection performance requirements in the LSC contract.  Further, the NSC relied on manual processes to handle the execution, servicing, and termination of partial claims.  As a result, there is an increased risk that FHA will not collect the debts, ultimately impacting the FHA insurance fund.