Resolution Trust Corporation: More Actions Needed to Improve Single-Family Affordable Housing Program

RTC has revised its program compliance review procedures as well as its SAMDA contractor oversight program to more carefully focus on areas where GAO identified non-compliance with RTC policies. Since the issuance of the report, program compliance reviews scheduled for 1992 have been completed and corrective action plans were developed. Follow-up reviews are being held to ensure that these plans are properly implemented. Internal control reviews have been held in four offices in 1993, and are scheduled for the remaining two offices during September and October, 1993. Also, RTC has conducted reviews of all four contractors that do loan underwriting and income certifications for the affordable housing program. Areas where income certifications were being done have been identified improperly, and mandatory training on the single family income certification process has been held. Through August 1993, 17 certification training courses have been held for SAMDA contractors.

Directive was issued requiring a post-sale occupancy monitoring system at each field office.

RTC has issued new directives defining its policies and procedures for resolving program violations. RTC headquarters is now notified of all significant Inspector General investigations. AHDP headquarters staff are involved in the decision of whether to prosecute the action or seek civil remedies. One of the new directives clarifies civil remedies in cases of fraud, such as in AHDP. Program and legal staff received training in July 1993 on the new procedures. AHDP is refining its procedures with Legal to pursue civil and administrative remedies, and will issue further policy on resolving program violations. As of July 1993, RTC had 28 program violation investigations in process.

RTC has implemented a data integrity program and requested changes to the REOM system. Audit controls have been incorporated into the data cleanup process to ensure accuracy of the data. These controls include error reporting programs, verification of data entry, data spot checks for sampling and verification of REOMS data field contents, and a monthly data evaluation and reporting process.