Why is the pam_mkhomedir, which is used to create home directories automatically, no longer working?

Issue

• pam_mkhomedir.so is not creating home directories on login.
• After updating to selinux-policy 3.13.1-23.el7 (or later) the following Access Vector Cache (AVC) is seen when user's home directory fails to be created by pam RPM's /usr/sbin/mkhomedir_helper

type=AVC msg=audit(1425915096.079:244): avc: denied { entrypoint } for pid=2461 comm="sshd" path="/usr/sbin/mkhomedir_helper" dev="dm-1" ino=8924241 scontext=unconfined_u:unconfined_r:unconfined_t:s0-s0:c0.c1023 tcontext=system_u:object_r:oddjob_mkhomedir_exec_t:s0 tclass=file