Resolution Trust Corporation:

Real Estate Recoveries 1993

GGD-94-84FS: Published: Mar 25, 1994. Publicly Released: Apr 12, 1994.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO provided information on the Resolution Trust Corporation's (RTC) efforts to recover assets from failed savings and loans, focusing on its: (1) overall estimated recovery rates; and (2) actual real estate recoveries.

GAO found that: (1) between 1991 and 1992, RTC overall recovery rates for its financial and real estate assets declined 9 cents per dollar of book value; (2) significant economic uncertainties still exist that could affect the value of assets in resolved and unresolved institutions; (3) although economic conditions have improved RTC receiverships, it is difficult to predict the recovery rates and timing of sales because the remaining assets are considered hard to sell; (4) between 1992 and 1993, cumulative real estate sales and net proceeds decreased from the previous year, actual recovery rates increased 4 percent, and the cumulative recovery rate remained constant; (5) as of 1993, the average recovery rates from the sales of single-family property declined; (6) the average recovery rates for real estate assets sold in receiverships were lower than for assets sold in conservatorships; (7) in 1993, the difference between real estate sales prices and their appraised values increased with the age of the appraisal; and (8) although RTC reported that its cumulative closing costs decreased by 1 percent between 1991 and 1993, its closing costs may be unrealistic because its reporting system does not include all of RTC selling costs.

Sep 5, 2018

Jul 19, 2018

Jul 18, 2018

Jun 26, 2018

Mar 22, 2018

Mar 16, 2018

Mar 15, 2018

Feb 27, 2018

Looking for more? Browse all our products here