HUD Should Strengthen Mortgagee Monitoring to Reduce Losses

摘要

Dept. of Housing and Urban Development-approved mortgage lenders--mortgagees--are responsible for originating and servicing HUD-insured single-family loads. If a mortgagee does not adequately assess the prospective home buyer's ability to repay a loan and/or does not provide proper servicing of the loan, defaults, foreclosures, and substantial losses to the Federal Government can occur. In fiscal year 1980, HUD sold 13,698 single-family homes that it had acquired after foreclosures at a loss of about $183 million--about $13,400 on the average for every property sold. Improved loan origination and servicing would reduce foreclosures and the Government's losses. GAO found that HUD needs to improve mortgagee monitoring by: (1) establishing more realistic mortgagee review goals; (2) concentrating on mortgagees that need monitoring the most; (3) providing more extensive review coverage; and (4) improving the quality and comprehensiveness of reviews.