While the office has not yet issued any formal updates on the investigation, HUD Inspector General Rae Oliver Davis addressed the matter during a recent interview with HousingWire, where she discussed more broadly her office’s involvement in an investigation of the New York City Housing Authority (NYCHA).
Processes and risks
In December 2022, Ginnie Mae seized RMF’s HMBS portfolio due to the company’s bankruptcy, and the resulting stresses contributed to the decision to investigate, Oliver Davis explained at the time. Focusing first on her office’s oversight work, Oliver Davis said that any audits, reviews or investigations her office takes on are primarily driven by what are identified as the most significant risks to the HUD portfolio.
“GNMA guarantees investors will receive payments on more than $2 trillion of mortgage-backed securities,” she said. “We believe one of HUD’s top management challenges is managing counterparty risk, and within that space, having adequate capacity to handle troubled portfolios like RMF’s.”
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