The Office of Inspector General (OIG) has recently submitted its HUD Semiannual Report (Report) to Congress. The scope of the Report runs from the period October 21, 2021, through March 31, 2022. The Report is a compilation of the OIG’s findings for the given time period and is intended to keep Congress apprised of significant findings, positive progress made by HUD, and areas of deficiency that require improvement.
Among other things, the Report had certain findings of interest:
- It was discovered that in November 2020, at least one third of borrowers who were delinquent on their FHA-insured loans and were not on forbearance were either unaware or misinformed about the COVID-19 forbearance available to them;
- OIG audits revealed that HUD did not have adequate controls in place to ensure that FHA refunds were received by the appropriate homeowners; and
- FHA has insured at least 31,500 loans serviced in 2020 for properties in special flood hazard flood zones, but did not maintain the required flood insurance coverage.