HUD Shares Data with Treasury to Sniff Out Housing Fraud
Published Date: 1/16/2026
Notice
Summary
HUD is updating its privacy records to better share info with the Treasury Department to catch and stop fraud. This change affects anyone whose info HUD holds and opens a 30-day window for public comments until February 17, 2026. If no big objections come in, the update kicks in right after, helping protect your data and taxpayer money.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
HUD May Share Records with Treasury Do Not Pay
If HUD maintains your records in any of the listed HUD systems (for example LOCCS, HUDCAPS, EIV, TRACS, HERMIT, and others), HUD can disclose those records to the U.S. Department of the Treasury's Do Not Pay Working System to identify, prevent, or recoup improper payments and to review payment and award eligibility for federal funds, including state-administered federally funded programs.
Do Not Pay Routine Use Removed for FHA Origination
HUD removes the existing Do Not Pay routine use (previously listed as routine use "P" at 90 FR 36173 (August 1, 2025)) for the Single Family Mortgage Insurance Origination System. That prior routine use allowed a computer matching interface between CHUMS and Treasury's Do Not Pay to prevent and recover improper payments and to verify borrower eligibility for FHA mortgage insurance programs.
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