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FGMSD-79-41 1 (1979-08-16)

handle is hein.gao/gaobaazom0001 and id is 1 raw text is: 


BY THE COMPTROLLER GENERAL       IIIIII IIIIIIIII

                                                                L~10148



Report To The Congress


OF THE UNITED STATES


Weaknesses In Servicing And

Accounting For Home

Mortgages Held By HUD



The Department of Housing and Urban Devel-
opment services and accounts for mortgages
valued at over $151 million. These mortgages
were either bought from commercial lenders
to prevent foreclosure on defaulted mort-
gagors experiencing temporary financial prob-
lems or resulted from the Department selling
property it had previously acquired.

The Department does not provide adequate
incentives to encourage these mortgagors to
pay off their debts. Rather than helping them
eliminate or reduce their delinquencies, the
Department has allowed many mortgagors to
fall so far behind that repayment may be
impossible.

During GAO's review, the Department made a
number of changes to improve its accounting
and servicing activities. Additional changes are
needed, however, to reduce the delinquency
rate and to promptly collect funds due the
Government.


'77


110148


   FGMSD-79-41
AUGUST 16 197-9

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