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Highlights

Pursuant to a congressional request, GAO reviewed the final resolution of appeals of Farmers Home Administration (FmHA) loan decisions to determine whether appellants received loans: (1) they requested after FmHA lending decisions were remanded for reconsideration; and (2) and loan servicing in a timely manner.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture 1. To further improve the management of the agency's loan programs and results of its appeals process, the Secretary of Agriculture should direct the Administrator, FmHA, to develop specific time standards for completing actions on remanded loanmaking and loan-servicing decisions.
Closed - Not Implemented
While the agency generally agrees with the recommendations, it has not acted on them.
Department of Agriculture 2. To help ensure timely actions on remanded decisions, the Secretary of Agriculture should direct the Administrator, FmHA, to clarify the National Appeals Staff hearing officers' decision letters to specify the responsibilities of and actions required by FmHA lending officials and appellants.
Closed - Implemented
FmHA clarified the language in its decision letters as recommended.
Department of Agriculture 3. To help ensure that FmHA managers can effectively oversee the timely resolution of remanded appeal decisions, the Secretary of Agriculture should direct the Administrator, FmHA, to clearly define each of the status categories in the Implementation of Reversed and Modified Appeals Decisions (IRMAD) system.
Closed - Not Implemented
No action has been taken by the agency.

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