Problems Continue in Accounting for and Servicing HUD-Held Multifamily Mortgages
AFMD-82-18
Published: Aug 18, 1982. Publicly Released: Oct 17, 1982.
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Highlights
GAO was asked to perform a followup review to a prior report on loan servicing and accounting problems in the Department of Housing and Urban Development (HUD) multifamily mortgage programs. The earlier report concluded that the failure of HUD to produce adequate delinquency data and aggressively collect amounts owed on defaulted multifamily mortgages contributed significantly to the over $500 million owed HUD in delinquent loan payments. In that report, HUD agreed with the GAO recommendations and promised to improve its accounting system and to better manage its debt collection efforts.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Housing and Urban Development | The Secretary of HUD should fully implement the recommendations of the prior report by expediting testing and correction of delinquency information generated by the new management information system. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Housing and Urban Development | The Secretary of HUD should fully implement the recommendations of a prior report by requiring aggressive collection actions, including referrals to the Department of Justice, to obtain repayment of project funds used for unauthorized or questionable purposes. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Housing and Urban Development | The Secretary of HUD should fully implement the recommendations of the prior report by requiring field offices to obtain complete financial reports from borrowers. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Housing and Urban Development | The Secretary of HUD should fully implement the recommendations of the prior report by providing staff additional training in financial analysis. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Accounting systemsDebt collectionDelinquent loansFinancial managementHousing programsMortgage programsProgram evaluationMortgagesClaims paymentsFinancial statements