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Home » IG Finds HUD’s Nonpayment Orders Curbed Improper Claim Payments
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IG Finds HUD’s Nonpayment Orders Curbed Improper Claim Payments

March 9, 2018
The Department of Housing and Urban Development’s nonpayment orders were effective in preventing payment of improper claims on FHA loans, according to the department’s inspector general. The HUD IG said a review of 17 claims with an active nonpayment order and 10 claims that had no such order show no improper claims that were paid. The IG conducted its audit from October to December 2017, focusing on FHA loans that had a nonpayment order and a claim paid from Jan. 1, 2013, to Aug. 31, 2017. Of the 97 loans identified and targeted by IG auditors, 17 were picked as a non-statistical sample based on whether an inactive nonpayment order was entered on the same date as the active nonpayment order, comments entered for the nonpayment order, and the claim-payment amounts. The IG also picked 65 loans that had a claim paid after an inactive nonpayment order was created with an ...
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