Housing Oversight: Testimony of the HUD and FHFA Inspectors General (EventID=117458)

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Connect with the House Financial Services Committee Get the latest news: https://democrats-financialservices.house.gov/ Follow us on Facebook: https://www.facebook.com/HouseFinancialCmte Follow us on Twitter: https://twitter.com/FSCDems ___________________________________ On Wednesday, June 26, 2024, at 10:00 a.m. (ET) Housing and Insurance Subcommittee Chairman Congressman Davidson and Ranking Member Congressman Cleaver will host a hearing entitled, “Housing Oversight: Testimony of the HUD and FHFA Inspectors General." ___________________________________ Witnesses for this one-panel hearing will be: • The Honorable Rae Oliver Davis, Inspector General, Department of Housing and Urban Development (HUD) • The Honorable Brian M. Tomney, Inspector General, Federal Housing Finance Agency (FHFA) ___________________________________ The hearing will focus on the findings issued by the Offices of Inspectors General (OIGs) overseeing the Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA). These two OIGs are responsible for conducting meaningful oversight and preventing waste, fraud, and abuse at both HUD and FHFA. HUD is a sizable government agency, employing over 8,600 full-time employees, with numerous rental assistance programs and nearly $80 billion in budget authority for Fiscal Year 2024. FHFA is an independent regulatory agency with more than 700 employees. It is responsible for overseeing the operations of the housing government-sponsored enterprises, Fannie Mae and Freddie Mac, as well as the Federal Home Loan Banks (FHLBs). Combined, the programs of HUD and Fannie Mae and Freddie Mac account for about two-thirds of all first-lien mortgage originations each year. General Background Federal Inspectors General are empowered by the Inspector General Act of 1978. Originally, the Act created 12 OIGs, including the HUD OIG. Over time, that number has expanded to the current number of 73 OIGs, all of whom oversee various parts of the federal government. The OIGs have a dual responsibility to report both to Congress and to the head of the agency (or other entity) that they oversee. Under the Inspector General Act, the duties and responsibilities of the OIGs can be summarized as follows: • To provide policy direction for and to conduct, supervise, and coordinate audits and investigations relating to the programs and operations of the agency; • To review existing and proposed legislation and regulations and to report on their impact to the agency’s programs and operations; • To recommend policies for the agency, and to conduct, supervise, or coordinate other activities carried out or financed by the agency; • To conduct, supervise, or coordinate relationships between the agency and other federal agencies, state and local governmental agencies, and nongovernmental entitiesin order to promote economy and efficiency and to prevent waste, fraud, and abuse, including identifying and prosecuting any participants in fraud or abuse; • To keep the head of the agency and Congress fully and currently informed of efforts concerning fraud and other serious problems, abuses, and deficiencies; and • To recommend corrective actions the agency can take as well as monitor the progress of these actions. HUD Office of Inspector General Background The current HUD Inspector General is Rae Oliver Davis. She was confirmed by the Senate and has served in this role since January 23, 2019. Prior to her current position, Ms. Oliver Davis served as Acting Assistant Inspector General for the HUD OIG. She has also worked in senior positions in both the Office of the Special Inspector General for the Troubled Asset Relief Program as well as the Office of the Inspector General for the U.S. Postal Service. She previously appeared before the Committee on June 21, 2023. According to Ms. Oliver Davis’s testimony in the 118th Congress, the HUD OIG’s recent oversight initiatives can be summarized as follows: • Preventing lead exposure and poisoning in HUD-assisted housing; • Mitigating deficiencies in the physical condition of public housing and other HUD-assisted properties, including those that threaten life and safety; and • Addressing financial fraud aimed at the vulnerable populations that HUD serves. In May, the HUD OIG released its Semiannual Report to Congress. During this reporting period, HUD OIG audits found more than $14 million in funds that could be put to better use and more than $500,000 in questioned costs. It also recovered more than $8 million in collections. In addition, HUD OIG investigations resulted in 61 criminal convictions, 16 civil actions, and 79 government-wide suspension and debarment actions, as well as more than $17.6 million in restitution and judgments, with more than $4.6 million in total recoveries and receivables going to... ___________________________________ Hearing page: https://democrats-financialservices.house.gov/events/eventsingle.aspx?EventID=412550