Second Interim Report on Review of HUD's Accounting System for Billing and Collection of Federal Housing Administration Mortgage Insurance Premiums from Mortgagees
FGMSD-77-7: Published: Dec 13, 1976. Publicly Released: Dec 13, 1976.
- Full Report:
An interim report is presented of a review of the Department of Housing and Urban Development's (HUD) accounting system for billing and collecting Federal Housing Administration mortgage insurance premiums. A questionnaire was sent to 200 mortgagees or about 59 percent of HUD total insurance premium billings.
Responses from 134 mortgagees indicated that about $2.2 million in insurance premiums was due and being held in escrow accounts because mortgagees had not received bills from HUD. The delinquencies were caused primarily because the HUD master insurance file had not listed the respondents as the mortgagees of record. Previously reported weaknesses in the HUD accounting system include: (1) not following established procedure in controlling documents, (2) not sending all source document data to the computerized system and not reentering data initially rejected by the system, (3) not correcting errors reported by mortgagees, and (4) not controlling and coordinating transaction processing.