Information Technology: Streamlining FHA's Single Family Housing
Operations (Letter Report, 10/17/96, GAO/AIMD-97-4).

Pursuant to a congressional request, GAO reviewed the Federal Housing
Administration's (FHA) streamlining plans, focusing on: (1) FHA plans to
use information technology to support the streamlining of single family
housing operations and reduce staff; (2) similarities between FHA
initiatives and those undertaken by leading mortgage organizations to
increase productivity; and (3) FHA efforts to ensure that technology
initiatives will maintain or improve management controls over single
family housing operations.

GAO found that: (1) FHA needs to streamline operations and acquire
state-of-the-art technology and information systems to transform itself
into a results-oriented, financially accountable operation; (2) to
consolidate, phase out, or replace loan processing, loss mitigation and
loan servicing, and property disposition and maintenance functions, FHA
will use its existing information technology capabilities or develop new
information technology applications; (3) FHA information technology
initiatives are similar to, but not as intensive as, those undertaken by
other mortgage industry organizations to increase productivity; (4) FHA
may be able to achieve additional efficiency and effectiveness
improvements if it uses other information system capabilities such as
electronic analysis of loan data and the use of computer models to
automatically focus quality assurance, default prevention, and loss
minimization activities on the most vulnerable areas; (5) FHA has taken
corrective action to address management control and information system
weaknesses in its loan origination, delinquency resolution, and property
disposition activities; and (6) FHA also plans to incorporate recently
legislated requirements regarding information technology investments
into its strategic investment process.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-97-4
     TITLE:  Information Technology: Streamlining FHA's Single Family 
             Housing Operations
      DATE:  10/17/96
   SUBJECT:  Mortgage programs
             Federal downsizing
             Federal agency reorganization
             Strategic information systems planning
             Housing programs
             Reductions in force
             Information resources management
             Loan accounting systems
             Management information systems
IDENTIFIER:  HUD Single Family Mortgage Assignment Program
             HUD Reinvention Blueprint