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Single Family Housing Guaranteed Loan Program Appraisals

Report Information

Date Issued
Report Number:
04601-0001-41
Report Type
Audit
Component
Rural Housing Service
Description
OIG reviewed RHS’ SFHGLP controls to determine whether it adequately ensured lenders’ and appraisers’ compliance with agency and USPAP requirements.
Joint Report
No
Agency Wide
No (location specific)
Location(s)

United States

Questioned Costs
$814,604

Recommendations

Develop and implement an oversight function to asses the quality and accuracy of RHS' administrative appraisal reviews and establish the frequency of its oversight activities.

Develop and implement controls for pre-closing technical appraisal reviews to prevent the issuance of conditional commitments for loan guarantees prior to regional agency apprasiers' determinations that appraisals are acceptable.

Develop and implement a formal process to identify common deficiencies found during pre-closing technical appraisal reviews and QCRs.

Develop and implement a process, including the frequency of communication, to share common deficiencies found during pre-closing technical appraisal reviews and QCRs with all approved lenders and administrative reviewers.

Develop and implement a process, including the frequency of communication, to share all not acceptable QCR results with the responsible lender and administrative reviewer.