[Comments on Possible HUD Mutual Mortgage Insurance Fund Claim]

B-229799 February 4, 1988

The Honorable Alan Cranston United States Senator Fox Plaza 1390 Market Street, #918 San Francisco, CA 94102

Dear Senator Cranston:

This is in response to your November 13, 1987 letter to this Office in reference to your constituent, Peggy Smith. Ms. Smith contacted you regarding correspondence which she received from two private firms, indicating that the federal government owed her $1,045.14. Both firms offered to secure these funds for her in exchange for a 30 percent "finder's fee."

In a similar case that recently came to our attention, a sum was apparently due from the Mutual Mortgage Insurance Fund administered by the Department of Housing and Urban Development (HUD). B-201669, November 26, 1985. We have enclosed a copy of this decision. It would appear likely from the information contained with Ms. Smith's letter that this is the source of the funds about which she has been contacted. In order to learn if this is the basis for the finder's fee solicitations, she should contact HUD at (202) 775-5616 in order to determine whether the Mutual Mortgage Insurance Fund is the source of the unclaimed monies which are apparently in her name.

With regard to the offers to locate the funds allegedly owed to Ms. Smith, we generally view such arrangements as matters between private citizens, and not of direct concern to our Office. We are, however, not aware of any legal prohibition against third party offers to secure, for a "finders fee," moneys owed to individuals from the federal government.

Sincerely yours,

JAMES F. HINCHMAN General Counsel

Enclosure