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Single Family Housing Guaranteed Loan Program—Liquidation Value Appraisals—Interim Report

Report Information

Date Issued
Report Number:
04601-0001-23(1)
Report Type
Audit
Component
Rural Housing Service
Rural Housing Service
Description
OIG reviewed RHS’ controls over liquidation value appraisals to determine if SFH guaranteed loans are safeguarded and loss claims are not overstated.
Joint Report
No
Agency Wide
No (location specific)
Location(s)

United States

Questioned Costs
$768,722
Funds for Better Use
$0
View report on Oversight.gov

Recommendations

Prepare and submit a request to update GLS and subsequent systems to either (1) ensure a loss claim cannot be submitted for payment when a premature recovery calculator has been added prior to claim payment or (2) prevent the recovery calculator from being submitted prior to loss claim payment.

https://www.usda.gov/sites/default/files/04601-0001-23%281%29.pdf

Recover approximately $768,722 in funds due to Rural Development from lenders.

https://www.usda.gov/sites/default/files/04601-0001-23%281%29.pdf

Issue formal guidance to address the recovery calculator issue until the system is updated or future recoveries are eliminated.

https://www.usda.gov/sites/default/files/04601-0001-23%281%29.pdf