Collection of Credit Report Fees by the Farmers Home Administration

The Farmers Home Administration's rural housing loan program was reviewed to determine whether it was economical and efficient. The agency has joined other governmental agencies in obtaining credit reports from credit-reporting companies which are under contract with The Department of Housing and Urban Development. The Farmers Home Administration's regulations list the credit bureaus to be used, the areas covered by each bureau, and the fees charged the Government for each report. Under the agency's current procedures, credit reports may be ordered for each rural housing loan applicant and are paid for by the agency. If the applicant is successful, he is required to pay an $8 fee for the credit report at the time the loan is closed. If unsuccessful, the applicant is not required to reimburse the agency for the cost of the credit report. In addition, the agency does not collect the actual cost of the credit report from all borrowers.