HUD memo: staff cuts could disrupt mortgages, enable fraud

The Department of Housing and Urban Development’s own counsel is reportedly concerned that Trump administration-induced staff cuts could disrupt mortgage operations and increase fraud and litigation risks. 

The revelations stem from an internal HUD document seen by Bloomberg Citylab, according to an article published Thursday. Staff departures at the regulator could allegedly “greatly delay”‘ or disrupt efforts such as loan underwriting, processing mortgage insurance claims and closing apartment building sales. 

The outlet reports HUD’s Office of General Counsel drafted the memo, as the department prepares for an audit by the Government Accountability Office. Senate Democrats in April asked the nonpartisan federal agency to review their concerns over rumoured staffing slashes at HUD’s…