Image

Open Recommendations

Reverse Mortgages: FHA Needs to Improve Monitoring and Oversight of Loan Outcomes and Servicing

GAO-19-702
Sep 25, 2019
Show
9 Open Recommendations
Agency Affected Recommendation Status
Federal Housing Administration The FHA Commissioner should take steps to improve the quality and accuracy of HECM termination data. These steps may include updating the termination reasons in the HERMIT system or updating the HERMIT User Guide to more clearly instruct servicers how to record termination reasons. (Recommendation 1)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The FHA Commissioner should establish, periodically review, and report on performance indicators for the HECM program—such as the percentage of terminations due to borrower defaults, the proportion of active HECMs with delinquent property charges, the amount of servicer advances, and the percentage of distressed borrowers who have received foreclosure prevention options—and examine the impact of foreclosure prevention options in the forthcoming HECM program evaluation. (Recommendation 2)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The FHA Commissioner should develop analytic tools, such as dashboards or watch lists, to better monitor outcomes for the HECM portfolio, such as reasons for HECM terminations, defaults, use of foreclosure prevention options, or advances paid by servicers on behalf of HECM borrowers. (Recommendation 3)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The FHA Commissioner should evaluate FHA's foreclosure prioritization process for FHA-assigned loans. Such an analysis should include the implications that the process may have for HECM borrowers, neighborhoods, and FHA's insurance fund. (Recommendation 4)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The FHA Commissioner should develop and implement procedures for conducting on-site reviews of HECM servicers, including a risk-rating system for prioritizing and determining the frequency of reviews. (Recommendation 5)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The FHA Commissioner should work with CFPB to complete an agreement for sharing the results of CFPB examinations of HECM servicers with FHA. (Recommendation 6)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Federal Housing Administration: Opportunities Exist to Improve Defaulted Single-Family Loan Sales

GAO-19-228
Aug 02, 2019
Show
9 Open Recommendations
Agency Affected Recommendation Status
Federal Housing Administration The Commissioner of FHA should ensure that its eligibility checks are conducted throughout the DASP sale process, such as by establishing a schedule to check for eligibility at certain milestones. (Recommendation 1)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration In formalizing procedures for DASP, the Commissioner of FHA should document processes for timely consideration and review of program changes. (Recommendation 2)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The Commissioner of FHA should clearly define DASP objectives and develop measurable targets for all program objectives. (Recommendation 3)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The Commissioner of FHA should use performance data to develop criteria for when to hold DASP sales. (Recommendation 4)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The Commissioner of FHA should evaluate loan outcomes under DASP compared to outcomes for similar, unsold loans. (Recommendation 5)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The Commissioner of FHA should monitor individual purchasers' compliance with FHA's modification requirements and ensure the purchasers submit the data needed to evaluate the sustainability of modifications. (Recommendation 6)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Federal Housing Administration: Improved Procedures and Assessment Could Increase Efficiency of Foreclosed Property Conveyances

GAO-19-517
Jun 20, 2019
Show
3 Open Recommendations
Agency Affected Recommendation Status
Federal Housing Administration The Commissioner of FHA should enhance the content and communication of FHA's policies and procedures on conveyance condition, including by considering the program stakeholder views discussed in this report and other stakeholder input. (Recommendation 1)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The Commissioner of FHA should provide written direction to HOC REO directors on factors to consider when determining whether to reconvey a property with condition issues, issue a demand letter, or enter into a bypass agreement with the servicer. (Recommendation 2)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Federal Housing Administration The Commissioner of FHA should develop a formal plan for evaluating the outcomes of the preconveyance inspection pilot that includes key elements of evaluation design—such as evaluation objectives and measures—and utilizes participant feedback and control groups, as appropriate. (Recommendation 3)
Open

Recommendation status is Open.

When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Disaster Recovery: Better Monitoring of Block Grant Funds Is Needed

GAO-19-232
Mar 25, 2019
Show
6 Open Recommendations
Agency Affected Recommendation Status
Congress Congress should consider legislation establishing permanent statutory authority for a disaster assistance program administered by HUD or another agency that responds to unmet needs in a timely manner and directing the applicable agency to issue implementing regulations.
Open

Recommendation status is Open.

A bill introduced and passed by the House of Representative in the 116th Congress, HR 3702, would permanently authorize the Community Development Block Grant Disaster Recovery (CDBG-DR) program.
Department of Housing and Urban Development The Assistant Secretary for Community Planning and Development should develop additional guidance for HUD staff to use when assessing the adequacy of the financial controls, procurement processes, and grant management procedures that grantees develop. (Recommendation 1)
Open

Recommendation status is Open.

In November 2019, HUD said that the Office of Community Planning and Development (CPD) had revised the financial process and procedure checklist for grantees and HUD staff to include specific guidance indicating examples of an acceptable standard that would address the program requirements. We are following up with CPD on the extent to which similar revised guidance has been developed for the review of procurement processes and grant management procedures.
Department of Housing and Urban Development The Assistant Secretary for Community Planning and Development should develop additional guidance for HUD staff to use when assessing the adequacy of the capacity and unmet needs assessments that grantees develop. (Recommendation 2)
Open

Recommendation status is Open.

In November 2019, HUD said that CPD will provide training to HUD staff regarding the standards for assessing unmet needs and grantee capacity. HUD needs to provide written guidance or other documentation outlining the standards HUD staff must consider when assessing the adequacy of grantees' capacity and unmet needs assessments.
Department of Housing and Urban Development The Assistant Secretary for Community Planning and Development should require staff to document the basis for their conclusions during reviews of grantees' financial controls, procurement processes, and grant management procedures and capacity and unmet needs assessments. (Recommendation 3)
Open

Recommendation status is Open.

In November 2019, HUD stated that HUD staff are now required to indicate the basis for their conclusions in the checklist used to review financial controls and all correspondence between grantees and HUD staff regarding revisions to the financial processes will be provided as part of the certification or grant approval package. We are following up with CPD on the extent to which similar requirements have been developed for reviews of procurement processes, grant management procedures, and capacity and unmet needs assessments. In addition, CPD needs to provide documentation showing that all correspondence between grantees and HUD staff regarding revisions to financial controls, procurement processes, and grant management procedures and capacity and unmet needs assessments are to be part of the grant's approval package.
Department of Housing and Urban Development The Assistant Secretary for Community Planning and Development should develop and implement a comprehensive monitoring plan for the 2017 grants. (Recommendation 4)
Open

Recommendation status is Open.

In November 2019, HUD stated CPD had modified the CDBG-DR risk analysis tool to include pre-award conditions that must be factored into the provision of the grant agreement as well as future monitoring reviews. HUD stills needs to develop a comprehensive monitoring plan for the 2017 grants based on the risk assessments conducted using this revised tool.
Department of Housing and Urban Development The Assistant Secretary for Community Planning and Development should conduct workforce planning for the Disaster Recovery and Special Issues Division to help ensure that it has sufficient staff with appropriate skills and competencies to manage a growing portfolio of grants. (Recommendation 5)
Open

Recommendation status is Open.

On November 2019, HUD stated that the agency had recently added staffing to increase both the grant management and operations functions within CPD's Disaster Recovery and Special Issues Division. It also stated that through partner offices the agency had increased staffing in a support capacity. However, HUD did not provide workforce planning analysis showing that the increased staffing level was sufficient and that it had assessed the knowledge, skills, and abilities needed to manage a growing portfolio of CDBG-DR grants and developed strategies to address any gaps.