Problems Persist With HUD's 203(k) Home Rehabilitation Mortgage Insurance Program

GAO-01-1124T: Published: Sep 10, 2001. Publicly Released: Sep 10, 2001.

Additional Materials:


Stanley J. Czerwinski
(202) 512-6520


Office of Public Affairs
(202) 512-4800

The Department of Housing and Urban Development's (HUD) 203(K) Home Rehabilitation Mortgage Insurance Program helps promote the rehabilitation and repair of housing by combining, in one insured mortgage, the funds needed to purchase and rehabilitate a single-family home. The loans are made by banks and other private lenders from their own funds and are insured by HUD's Federal Housing Administration. The program's history of waste, fraud, and abuse prompted a GAO review of HUD program oversight about two years ago. The 203(K) program is inherently more risky than HUD's principal single-family loan insurance program because its rehabilitation component makes it more complex and susceptible to misuse. HUD's Inspector General and others noted such risks in 1997 and 1998 reports on the department's management of the program. HUD was not adequately targeting 203(K) loans and lenders for review, properly training and overseeing consultants/inspectors, and monitoring nonprofit organization's participation in the program.

Sep 10, 2018

Jun 26, 2018

Jun 19, 2018

May 17, 2018

Apr 26, 2018

Apr 24, 2018

Apr 17, 2018

Mar 22, 2018

Mar 15, 2018

Feb 15, 2018

Looking for more? Browse all our products here