Second Interim Report on Review of HUD's Accounting System for Billing and Collection of Federal Housing Administration Mortgage Insurance Premiums from Mortgagees

Gao ID: FGMSD-77-7 December 13, 1976

An interim report is presented of a review of the Department of Housing and Urban Development's (HUD) accounting system for billing and collecting Federal Housing Administration mortgage insurance premiums. A questionnaire was sent to 200 mortgagees or about 59 percent of HUD total insurance premium billings.

Responses from 134 mortgagees indicated that about $2.2 million in insurance premiums was due and being held in escrow accounts because mortgagees had not received bills from HUD. The delinquencies were caused primarily because the HUD master insurance file had not listed the respondents as the mortgagees of record. Previously reported weaknesses in the HUD accounting system include: (1) not following established procedure in controlling documents, (2) not sending all source document data to the computerized system and not reentering data initially rejected by the system, (3) not correcting errors reported by mortgagees, and (4) not controlling and coordinating transaction processing.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: No director on record Team: No team on record Phone: No phone on record


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