VA's Home Loan Guaranty Program

T-RCED-87-31: Published: Jun 17, 1987. Publicly Released: Jun 17, 1987.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed the Veterans Administration's (VA) Home Loan Guaranty Program, focusing on: (1) the Deficit Reduction Act's impact on the program; (2) VA servicing of defaulted loans; and (3) whether VA could reduce the costs of its property acquisition and disposal process. GAO noted that: (1) the act resulted in an increase in the debt of defaulting borrowers because it required VA to include certain costs in deciding whether to acquire foreclosed properties; (2) the act also increased the number of properties that VA did not acquire; (3) loan servicing for delinquent loans varied between VA regional offices; (4) VA is not fully utilizing its option of refinancing defaulted loans; (5) despite a high potential cost avoidance, VA has not adequately utilized its option of refunding mortgages that would otherwise be foreclosed; (6) VA did not generally inform defaulting veterans that it could assist them in selling their homes to avoid foreclosure; and (7) VA lost an average of $14,400 on each foreclosed property that it sold in 1986. GAO believes that VA: (1) is not adequately attempting to avoid foreclosure costs through voluntary deed conveyance; (2) could reduce its acquisition costs if it encouraged more third-party bids at foreclosure sales; and (3) could further reduce its acquisition costs by eliminating or reducing its title insurance requirements.

Oct 19, 2017

Oct 12, 2017

Sep 29, 2017

Sep 22, 2017

Sep 19, 2017

Sep 13, 2017

Sep 12, 2017

Sep 6, 2017

Sep 5, 2017

Jul 20, 2017

Looking for more? Browse all our products here