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I also experience this on a Fedora Rawhide system. Fully updated as of 2017-03-14, oddjob 0.34.4-1.fc26, oddjob-mkhomedir 0.34.4-1.fc26, selinux-policy 3.13.1-244.fc27 Below is the journal output of an attempt to ssh in as a valid LDAP user where oddjob-mkhomedir is denied creation of the home dir by selinux. If selinux is set to permissive the homedir creation succeeds. Mar 14 09:46:58 jpruente-vm audit[1716]: CRYPTO_KEY_USER pid=1716 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=destroy kind=session fp=? direction=both spid=1717 suid=74 rport=51617 laddr=10.1.1.18 lport=22 exe="/usr/sbin/sshd" hostname=? addr=10.1.1.20 terminal=? res=success' Mar 14 09:46:58 jpruente-vm audit[1716]: USER_AUTH pid=1716 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=success acct="jpruente" exe="/usr/sbin/sshd" hostname=? addr=10.1.1.20 terminal=ssh res=success' Mar 14 09:46:58 jpruente-vm audit[1716]: CRED_ACQ pid=1716 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=PAM:setcred grantors=pam_localuser,pam_sss acct="jpruente" exe="/usr/sbin/sshd" hostname=10.1.1.20 addr=10.1.1.20 terminal=ssh res=success' Mar 14 09:46:58 jpruente-vm audit[1716]: USER_ROLE_CHANGE pid=1716 uid=0 auid=200045 ses=10 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='pam: default-context=unconfined_u:unconfined_r:unconfined_t:s0-s0:c0.c1023 selected-context=unconfined_u:unconfined_r:unconfined_t:s0-s0:c0.c1023 exe="/usr/sbin/sshd" hostname=10.1.1.20 addr=10.1.1.20 terminal=ssh res=success' Mar 14 09:46:58 jpruente-vm systemd[1]: Created slice User Slice of jpruente. Mar 14 09:46:58 jpruente-vm systemd[1]: Starting User Manager for UID 200045... Mar 14 09:46:58 jpruente-vm systemd-logind[528]: New session 10 of user jpruente. Mar 14 09:46:58 jpruente-vm systemd[1]: Started Session 10 of user jpruente. Mar 14 09:46:58 jpruente-vm audit[1718]: USER_ACCT pid=1718 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:init_t:s0 msg='op=PAM:accounting grantors=pam_unix,pam_sss,pam_permit acct="jpruente" exe="/usr/lib/systemd/systemd" hostname=? addr=? terminal=? res=success' Mar 14 09:46:58 jpruente-vm audit[1718]: USER_ROLE_CHANGE pid=1718 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:init_t:s0 msg='pam: default-context=unconfined_u:unconfined_r:unconfined_t:s0-s0:c0.c1023 selected-context=unconfined_u:unconfined_r:unconfined_t:s0-s0:c0.c1023 exe="/usr/lib/systemd/systemd" hostname=? addr=? terminal=? res=success' Mar 14 09:46:58 jpruente-vm audit[514]: USER_AVC pid=514 uid=81 auid=4294967295 ses=4294967295 subj=system_u:system_r:system_dbusd_t:s0-s0:c0.c1023 msg='avc: denied { send_msg } for msgtype=method_call interface=com.redhat.oddjob_mkhomedir member=mkhomedirfor dest=com.redhat.oddjob_mkhomedir spid=1718 tpid=554 scontext=system_u:system_r:init_t:s0 tcontext=system_u:system_r:oddjob_t:s0-s0:c0.c1023 tclass=dbus exe="/usr/bin/dbus-daemon" sauid=81 hostname=? addr=? terminal=?' Mar 14 09:46:58 jpruente-vm systemd[1718]: pam_unix(systemd-user:session): session opened for user jpruente by (uid=0) Mar 14 09:46:58 jpruente-vm audit[1718]: USER_START pid=1718 uid=0 auid=200045 ses=11 subj=system_u:system_r:init_t:s0 msg='op=PAM:session_open grantors=pam_selinux,pam_selinux,pam_loginuid,pam_keyinit,pam_limits,pam_systemd,pam_unix,pam_sss acct="jpruente" exe="/usr/lib/systemd/systemd" hostname=? addr=? terminal=? res=success' Mar 14 09:46:58 jpruente-vm systemd[1718]: Reached target Timers. Mar 14 09:46:58 jpruente-vm systemd[1718]: Starting D-Bus User Message Bus Socket. Mar 14 09:46:58 jpruente-vm systemd[1718]: Reached target Paths. Mar 14 09:46:58 jpruente-vm systemd[1718]: Listening on D-Bus User Message Bus Socket. Mar 14 09:46:58 jpruente-vm systemd[1718]: Reached target Sockets. Mar 14 09:46:58 jpruente-vm systemd[1718]: Reached target Basic System. Mar 14 09:46:58 jpruente-vm systemd[1718]: Reached target Default. Mar 14 09:46:58 jpruente-vm systemd[1718]: Startup finished in 118ms. Mar 14 09:46:58 jpruente-vm audit[1]: SERVICE_START pid=1 uid=0 auid=4294967295 ses=4294967295 subj=system_u:system_r:init_t:s0 msg='unit=user@200045 comm="systemd" exe="/usr/lib/systemd/systemd" hostname=? addr=? terminal=? res=success' Mar 14 09:46:58 jpruente-vm systemd[1]: Started User Manager for UID 200045. Mar 14 09:46:58 jpruente-vm audit[1724]: AVC avc: denied { create } for pid=1724 comm="mkhomedir" name="jpruente" scontext=system_u:system_r:oddjob_mkhomedir_t:s0-s0:c0.c1023 tcontext=system_u:object_r:default_t:s0 tclass=dir permissive=0 Mar 14 09:46:58 jpruente-vm oddjob-mkhomedir[1724]: error creating /ldaphome/jpruente: Permission denied Mar 14 09:46:59 jpruente-vm sshd[1716]: pam_unix(sshd:session): session opened for user jpruente by (uid=0) Mar 14 09:46:59 jpruente-vm audit[1716]: USER_START pid=1716 uid=0 auid=200045 ses=10 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=PAM:session_open grantors=pam_selinux,pam_loginuid,pam_selinux,pam_namespace,pam_keyinit,pam_keyinit,pam_limits,pam_systemd,pam_unix,pam_sss,pam_lastlog acct="jpruente" exe="/usr/sbin/sshd" hostname=10.1.1.20 addr=10.1.1.20 terminal=ssh res=success' Mar 14 09:46:59 jpruente-vm audit[1725]: CRYPTO_KEY_USER pid=1725 uid=0 auid=200045 ses=10 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=destroy kind=server fp=SHA256:00:00:00:00:00:00:00:00:00:00 direction=? spid=1725 suid=0 exe="/usr/sbin/sshd" hostname=? addr=? terminal=? res=success' Mar 14 09:46:59 jpruente-vm audit[1725]: CRYPTO_KEY_USER pid=1725 uid=0 auid=200045 ses=10 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=destroy kind=server fp=SHA256:11:11:11:11:11:11:11:11:11:11 direction=? spid=1725 suid=0 exe="/usr/sbin/sshd" hostname=? addr=? terminal=? res=success' Mar 14 09:46:59 jpruente-vm audit[1725]: CRYPTO_KEY_USER pid=1725 uid=0 auid=200045 ses=10 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=destroy kind=server fp=SHA256:22:22:22:22:22:22:22:22:22:22 direction=? spid=1725 suid=0 exe="/usr/sbin/sshd" hostname=? addr=? terminal=? res=success' Mar 14 09:46:59 jpruente-vm audit[1725]: CRED_ACQ pid=1725 uid=0 auid=200045 ses=10 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=PAM:setcred grantors=pam_localuser,pam_sss acct="jpruente" exe="/usr/sbin/sshd" hostname=10.1.1.20 addr=10.1.1.20 terminal=ssh res=success' Mar 14 09:46:59 jpruente-vm audit[1716]: USER_LOGIN pid=1716 uid=0 auid=200045 ses=10 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=login id=200045 exe="/usr/sbin/sshd" hostname=10.1.1.20 addr=10.1.1.20 terminal=/dev/pts/2 res=success' Mar 14 09:46:59 jpruente-vm audit[1716]: USER_START pid=1716 uid=0 auid=200045 ses=10 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=login id=200045 exe="/usr/sbin/sshd" hostname=10.1.1.20 addr=10.1.1.20 terminal=/dev/pts/2 res=success' Mar 14 09:46:59 jpruente-vm audit[1716]: CRYPTO_KEY_USER pid=1716 uid=0 auid=200045 ses=10 subj=system_u:system_r:sshd_t:s0-s0:c0.c1023 msg='op=destroy kind=server fp=SHA256:22:22:22:22:22:22:22:22:22:22 direction=? spid=1726 suid=200045 exe="/usr/sbin/sshd" hostname=? addr=? terminal=? res=success'