HUD Should Strengthen Mortgagee Monitoring to Reduce Losses.

Abstract

Dept. of Housing and Urban Development-approved mortgage lenders--mortgagees--are responsible for originating and servicing HUD-insured single-family loads. If a mortgagee does not adequately assess the prospective home buyer's ability to repay a loan and/or does not provide proper servicing of the loan, defaults, foreclosures, and substantial losses to the Federal Government can occur. In fiscal year 1980, HUD sold 13,698 single-family homes that it had acquired after foreclosures at a loss of about $183 million--about $13,400 on the average for every property sold. Improved loan origination and servicing would reduce foreclosures and the Government's losses. GAO found that HUD needs to improve mortgagee monitoring by: (1) establishing more realistic mortgagee review goals; (2) concentrating on mortgagees that need monitoring the most; (3) providing more extensive review coverage; and (4) improving the quality and comprehensiveness of reviews.

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Document Details

Document Type
Technical Report
Publication Date
Jun 09, 1981
Accession Number
ADA107283

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • California
  • Deficiencies
  • Families (Human)
  • Geographic Regions
  • Governments
  • Insurance
  • Monitoring
  • National Governments
  • Organizational Structure
  • Public Relations
  • Quality Control
  • Test And Evaluation
  • Training
  • United States
  • United States Government
  • Work Measurement
  • Workload

Readers

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