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![handle is hein.gao/gaobadxty0001 and id is 1 raw text is:
DCCUNEFT RESU14E
02194 - [A1372336]
HUD's Accounting Systems for Mortgage Insurance Premiums and
Property Tax Liabilities. May 11, 1977. 26 pp. + 2 enclosures (4
pp.)
Testimony before the House Committee on Government Operations:
Manpower and Housing Subcommittee; by D. L. Scantlebury,
Director, Financial and General Management Studies Div.
Issue Area: Accounting and Financi i1 Reporting (2800).
Contact: Financial and General Management Studies Div.
Budget Function: Miscellaneous: Financial Management and
Information Systems (1002).
Organizaticn Concerned: Department of Housing and Urran
Deve) opment.
Congressional Relevance: House Committee on Government
Operations: Manpower and Housing Subcommittee.
Authority: National Housing Act of 1934 (12 U.S.C. 1709).
National Housing Act of 1954, as auended.
The Department of Housing and Urban Development's (HUD)
accounting systems for Moctgage insurance premiums and for
property tax liabilities have resultel in many problems.
Finlings/Conclusions: In May 1976 and December 1976, GAO
reported to the Secretary of HUD on the need for the Department
to collect delinquent mortgage insurance premiums due from
mortgages, improve its collection procedures, and improve its
accounting system and supporting automatic data processing
system. HUD sends about 25,000 premium billings in error each
month because the Offices of Finance and Accounting and ADP
Operations do not use established internal controls to assure
all mortgage transactiors sent in by mortgages are completely
and accurately entered in the master billing file. HUD annually
loses about $14.6 million in interest due to insarance premium
collection policies. Theve are opportunities for substantial
savings in HUD's Section 222 mortgage insurance premium payment
system. Improvements are still needed in HUD's accounting system
for paying property taxes. Recommendations: HUD should: follow
the 15-day criteria of the mortgage banking industry for
identifying delinquent ac'ounts; assess late payment charges;
and use its suspension authority in flagrant cases. The
Secretary of HUD should amend 9uD regulations to reguire
mortgages to pay insurance premiums monthly as they are
collected frnm mortgagors. The Secretaries of HUD and Defense
should evaluate the need for the Government to continue to pay
housing insurance premiums for military personnel. (SC)](ViewImageLocal?handle=hein.gao/gaobadxty0001&div=1&collection=&method=preview&ext=.png&size=3)