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AHACPA News

IN THIS ISSUE:

  • HUD Issues Update to New Regulation HAP/Residual Receipts FAQ
  • HUD OIG Issues Revision to Chapter 7 of the HUD Audit Guide
HUD Issues Update to New Regulation HAP/Residual Receipts FAQ
HUD has issued an update to the New Regulation HAP/Residual Receipts FAQ document.  The FAQ is based on comments and continuing questions regarding the accounting for the usage of residual receipts to replace HAP Funding in the upcoming years.  Certain accounting requirements described in the document caused concerns among owners, agents and practitioners.  Those issues are addressed in this revision.  The revised document can be found here.
HUD OIG ISSUES REVISION TO CHAPTER 7 OF THE HUD AUDIT GUIDE  

HUD has posted revisions to the chapter 7 of the HUD Audit Guide.  Significant changes to the chapter include:

  • The chapter applies to all approved supervised and non-supervised lenders.
  • The chapter removed references to loan correspondents and inserted information on third-party originators.
  • The chapter uses the terminology of "lender" and "borrower" instead of "mortgagee" and "mortgagor."
  • The chapter added paragraph 7-2 to differentiate the reporting requirements for the various types of lenders approved to participate in FHA programs.
  • The chapter added revised audited financial statement reporting requirements for supervised lenders in parent-subsidiary structures (paragraph 7-3).
  • Paragraph 7-4 discusses lender responsibility for the electronic submission of the audited financial statements and compliance data and auditors' involvement in the electronic submission process.
  • The compliance requirements and suggested audit procedures were restructured to set forth requirements and procedures relating to
    • Both Title I and Title II lenders (paragraph 7-5)
    • Title I lenders (paragraph 7-6)
    • Title II lenders (paragraph 7-7)
  • The chapter includes financial reporting requirements for multifamily lenders that were added as paragraph 7-7 to Change 9, dated January 2011 (re-designated as paragraph 7-8).
  • The revised chapter 7 is also used to cover Title I lenders, which were covered previously in chapter 8. Chapter 8 is now removed.
The revised chapter can be found on HUD OIG's website or AHACPA's website.

 

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