VA's Home Loan Guaranty Program

GAO discussed the Veterans Administration's (VA) Home Loan Guaranty Program, specifically: (1) its servicing requirements for lenders; (2) how VA monitors lenders' activities; (3) how VA could improve its supplemental servicing activities; and (4) the adequacy of its staffing. GAO found that: (1) VA required lenders to work with loan defaulters to resolve their delinquent loans; (2) VA could improve its monitoring system with on-site audits of lenders' servicing activities; (3) although VA instituted alternatives to foreclosures, VA regional offices have a great deal of latitude in dealing with delinquencies; (4) VA staffing levels were inadequate to counsel and assist the large number of veterans with delinquent loans; and (5) a VA task force recommended the establishment of a training program to instruct loan servicing personnel on a systematic approach to preventing foreclosures.