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This Week in Washington

HUD requires public housing authorities to verify tenant immigration eligibility

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This Week in Washington
Monday, February 2, 2026

The Department of Housing and Urban Development (HUD) announced on Jan. 23 that all public housing authorities (PHAs) and owners participating in HUD-funded housing have 30 days to verify tenant immigration eligibility, report deceased tenants and take corrective action.

A joint HUD and Department of Homeland Security (DHS) audit into all tenants across HUD-funded housing nationwide discovered around 200,000 tenants requiring eligibility verification, nearly 25,000 deceased tenants and nearly 6,000 ineligible non-American tenants.

“We will leave no stone unturned,” HUD Secretary Scott Turner said in a release. “We are proud to collaborate with DHS to execute on the president’s agenda of rooting out abuse of taxpayer funded resources. … With this new directive and audit, HUD is putting new processes in place to safeguard taxpayer resources and put the American people first.”

“Today’s action to verify the immigration eligibility of all HUD-assisted households is a major step forward to ensure we put American families first and eliminate waste, fraud, and abuse,” HUD Assistant Secretary of Public and Indian Housing Ben Hobbs said in a release. “There are hundreds of thousands of American families on housing waitlists across the country. It is essential we prioritize our limited resources to eligible families only.”

This directive is the follow up to a letter HUD sent to PHAs and owners in December 2025 that emphasized their legal obligation under Section 214 of the Housing and Community Development Act of 1980 (Section 214) and an executive order, titled “Ending Taxpayer Subsidization of Open Borders,” to verify the citizenship and immigration status of all individuals prior to admission to HUD-assisted housing.

Turner and DHS Secretary Kristi Noem signed the “American Housing Programs for American Citizens” Memorandum of Understanding (MOU) on March 24, 2025, to end the misappropriation of taxpayer dollars to benefit illegal immigrants. As a result of the MOU, HUD and U.S. Citizenship and Immigration Services completed, for the first time, an upload of all HUD Section 8 and Section 9 tenant files to Systematic Alien Verification for Entitlements (SAVE) for immigration status verification.

Within the next 30 days, PHAs and owners must review their Enterprise Income Verification-SAVE Tenant Match Report, verify that they have accurately reported individuals’ citizenship or immigration status to determine eligibility and initiate corrective actions.

PHAs and owners who fail to comply with the established requirements will be subject to sanctions. HUD will recapture funding for payments made on behalf of ineligible and deceased tenants.
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12 USC Section 2605 or Section 6 is titled Servicing of mortgage loans and administration of escrow accounts. It pertains to qualified written requests, notices of transfer of servicing and the administration of escrow accounts.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
12 USC Section 2609 or Section 10 is titled Limitation on requirement of advance deposits in escrow accounts. It governs escrow accounts including notifications and statements to borrowers. Section 10 also sets out penalties for those who violate the section.
RESPA Section 3 provides that a thing of value includes any payment, advance, funds, loan, service or other consideration

Regulation X says thing of value includes: monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person’s expenses or reduction in credit against an existing obligation.
A form used by a settlement or closing agent itemizing all charges imposed on a borrower and seller in a real estate transaction. This form represents the closing transaction and provides each party with a complete list of incoming and outgoing funds. RESPA requires the HUD-1 to be used as the standard real estate settlement form in all transactions in the U.S. involving federally related mortgage loans.
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