Sale of HUD-Held Single Family Mortgages

OGC-97-21: Published: Feb 21, 1997. Publicly Released: Feb 21, 1997.


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Pursuant to a legislative requirement, GAO reviewed the Department of Housing and Urban Development's (HUD) new rule on the sale of HUD-held single family mortgages. GAO noted noted that: (1) the rule would adopt the interim rule with certain modifications and clarifications; (2) the purpose of the sales, according to the preamble, is to decrease HUD's inventory of assigned mortgage loans and to reduce further losses to the Federal Housing Administration insurance funds; (3) the final rule would result in a program of regular sales of all HUD-owned single family mortgage loans; and (4) HUD complied with applicable requirements in promulgating the rule.

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