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CED-81-108 1 (1981-06-09)

handle is hein.gao/gaobabcpe0001 and id is 1 raw text is: 










OF THE L


TO


Department of Housing and Urban Develop-
ment-approved mortgage lender--idntifled in
this report as mort     -re responsible for
originating and servcing HUD-nsured single-
family loans. If a mortgagee does not ade-
quately assess the prospective home buyer's
ability to repay a loan and/or doe not pro-
vide proper servicing of the loan, defaults,
foreclosures, and substantial losses to the
Federal Goverment can occur. In fiscal year
1980, HUD sold 13,898 singlefamily homes                                              116763
that it had acquired after foreclosures at a loss
of about $183 mIllion--about $13,400 on the
verage forevery property sold. Improved loan
origination and servicing would reduce fore-
closures and the Federal Government's losses.
GAOfou nd that -HJI needs to improve mort-
gagee monitoring by
    -establishing more realistic mortgagee
    review goals,
    --concentrating on mortgagees that need
    monitoring the most,
    --providing more extensive review cover-
    age, and

    --improvingthe quality and comprehensive-
    ness of reviews.






                                                                                     CED-81-108
                                                                                     JUNE 9,1981

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