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B-118660 1 (1972-12-07)

handle is hein.gao/gaobaagaq0001 and id is 1 raw text is: 




                  UNITED STATES GENERAL ACCOUNTING OFFICE  P5-   /
                         WASHINGTON, D.C. 20548

MANPOWER AND WELFARE                                          c I
    DIVISION
                      BEST DOCUMENT AVAILABLE
    13-118660
    De r ,. Johnson:ll f6llll/ll
                                                       LM096224
         The General Accounting Office has reviewed certain as-
    pects of the  ntp                    V.oan
    urat      rogam authorized by section 5 of the Veterans'
    Housing Act of 1970 (38 U.S.C. 1819), approved October 23,
    1970.

         The purpose of the program is to help promote an adequate
    supl   of low-cost houin   for veterans by authlorizin V  o
    guarantee a portion of the mobile home loans made to them.
    Participation in the first 12 months of the program--2,401
    loans have been guaranteed--has been very low in the light of
    your expectation in February 1971 that 20,000 veterans would
    use this opportunity to purchase mobile homes using VA guaran-
    teed loans during the first year of the program.

         We performed our review at the San Francisco, Denver,
    Indianapolis, and Houston VA regional offices (VAROs) and at
    the VA central office in Washington, D.C. We obtained infor-
    mation from three mobile home dealers and five lending in-
    stitutions participating in the VA mobile home program and
    from one dealer and three lenders who were not participating.
    We also discussed the program with the Washington Affairs As-
    sociate of the Mobile Homes Manufacturers Association.

         The majority of the officials we talked with regarding
    low participation stated that the excessive time to process
    VA mobile home loans is a major deterrent to greater partici-
    pation in the VA Mobile Home Loan Guaranty Program.

    DELAYS IN LOAN APPROVAL
    DISCOURAGE PARTICIPATION

         Most of the dealers we contacted indicated an unwilling-
    ness to wait an unduly long time to receive payment, and vet-
    erans were unwilling to wait a long time to obtain VA loans. A
    lender told us that to expedite loan processing dealers often


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