The regional loan centers we visited also had procedures in place to ensure that loan servicing representatives comply with VA’s policies and procedures. During this engagement, we requested that VA provide us with basic data on its supplemental servicing program. VA’s ability to effectively manage its supplemental servicing program has been affected by two issues. First, VA does not have meaningful performance measures that allow it to accurately assess the effectiveness of its program. Second, VA’s computer system has not been able to generate useful and timely management reports that regional loan center managers and headquarters staff can use in managing their supplemental loan servicing program. Appendix I: Objectives, Scope, and Methodology

The objectives of this report are to (1) describe the Department of Veterans Affair’s (VA) policies and procedures for servicing troubled home loans, (2) assess VA’s implementation of its policies and procedures for servicing troubled home loans, and (3) analyze VA’s measures for assessing the effectiveness of its program for servicing troubled loans and ability to generate meaningful data for overseeing and improving loan servicing.
Why GAO Did This Study

The Department of Veterans' Affairs (VA) Loan Guaranty Program, which guarantees mortgage loans for qualified lenders, provides additional assistance to those who face financial hardship and possible foreclosure. This report discusses VA's supplemental loan servicing program. GAO (1) assesses VA's implementation of its policies and procedures for servicing troubled loans and (2) analyzes VA's measures for assessing the effectiveness of its supplemental servicing program and ability to generate meaningful data for overseeing and improving loan servicing.

What GAO Found

GAO found that the three regional loan centers it visited generally conformed with VA policies and procedures and had procedures in place to ensure that VA's loan servicing representatives complied with VA policies and procedures. Two issues affect VA's ability to effectively manage its supplemental servicing program. First, VA lacks meaningful performance measures that would allow it to accurately assess the effectiveness of its program. Second, VA's computer system has been unable to generate useful and timely management reports that regional loan center managers and headquarters staff could use to manage their supplemental loan servicing program.