Regarding the HUD OIG audit of HUD’s indemnification recovery process, what were HUD OIG’s conclusions?

The HUD OIG concluded that HUD had not been doing an adequate job of recovering for losses when indemnification agreements were in place. Specifically, it found that there had been recoverable losses on hundreds of loans included in the review, and although enforceable indemnification agreements were in place, HUD had not taken action to collect the losses pursuant to those agreements. Ultimately, HUD OIG recommended that HUD improve its processes around this, and HUD agreed with the OIG’s recommendations and indicated that it would be initiating billing processes where appropriate, and changing its processes to prevent recurrence of this issue.

Answered By: Melissa Klimkiewicz