Resolution Trust Corporation:
Recoveries on Asset Sales Through September 1992
GGD-93-51FS, Jan 8, 1993
Pursuant to a congressional request, GAO reviewed the: (1) Resolution Trust Corporation's (RTC) method for estimating asset sales losses; and (2) availability of current sales information.
GAO found that: (1) the RTC methodology for estimating asset recoveries was reasonable; (2) the Real Estate Owned Management System (REOMS) had slow response times during data input and retrieval, cumbersome computer screen formats, and restrictive reporting options; (3) the data were often inaccurate, incomplete, and outdated; (4) cumulative real estate sales increased more than 100 percent from October 1991 to September 1992; (5) RTC sales recoveries have declined; (6) single-family, land, and commercial real estate property categories showed some reduction in recoveries; (7) recoveries for real estate assets sold in receivership were less than for assets sold in conservatorship; (8) the gap between the real estate sales price and the appraised value continued to widen; and (9) RTC closing costs remained constant at 10 percent of the sale price.