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RCED-83-78 1 (1983-03-14)

handle is hein.gao/gaobabdyc0001 and id is 1 raw text is: 






BY THE U.S. GENERAL ACCOUNTING OFFICE




Report To Senator William Proxmire

                         ~GEWMX42



                                             RELEASED


HUD's Loan Servicing Contracts

For Multifamily Mortgages

Need Better Management


To improve loan servicing and accounting
for Department of Housing and Urban Devel-
opment-held multifamily mortgages, HUD,
in late 1981, awarded a contract covering its
Region III area. GAO questions several as-
pects of this contract's award and adminis-
tration. Among other things, GAO found (1)
no documented evidence that HUD consid-
ered the income accruing to the contractor
from holding escrow funds for the mort-
gages in determining the contractor's fees
and (2) that HUD has not established an
adequate basis for evaluating the contrac-
tor's performance.

GAO makes recommendations to correct
the problems with the Region III contract
and ensure that similar problems do not
occur with a nationwide contract, which is
now in the final negotiation process.





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                                                          GAO/RCED-83-78
                 10CoUX~         4MARCH 14,1983

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