Resolution Trust Corporation: Better Data Could Improve Effectiveness of
Nonperforming Loan Auctions (Letter Report, 11/14/94, GAO/GGD-95-1).

GAO reviewed the national nonperforming loan auction held in August 1993
in Kansas City, Missouri.  Incomplete and outdated loan data hindered
the Resolution Trust Corporation's (RTC) efforts to identify, select,
and dispose of nonperforming loans through the August 1993 auction.
RTC's initial selection of loans was incorrect because many of the loans
(1) did not meet the auction's criteria, (2) were involved in
litigation, (3) had already been paid off or sold, (4) had been
designated for other sales, or (5) had loan files that could not be
located.  As a result, the 11,181 loans, with a total book value of $673
million, offered and sold fell far short of the 60,000 loans initially
planned for the August 1993 auction.  The loan data RTC gave to
investors before the August 1993 auction were not always adequate,
although RTC spent a great deal of time and money on gathering detailed
information about the loans to be offered for sale at the auction.
Investors generally believed that RTC's data were useful, but they found
that important data were missing.  Some investors said that this
hampered their ability to evaluate the loans and make bidding decisions,
causing them to lower their bids or not participate.  RTC is taking
steps to address the issues GAO has identified.

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

 REPORTNUM:  GGD-95-1
     TITLE:  Resolution Trust Corporation: Better Data Could Improve 
             Effectiveness of Nonperforming Loan Auctions
      DATE:  11/14/94
   SUBJECT:  Delinquent loans
             Bank failures
             Savings and loan associations
             Property disposal
             Data bases
             Bank loans
             Reporting requirements
             Data integrity
             Contract modifications
             Information dissemination operations
IDENTIFIER:  RTC Central Loan Data Base
             RTC Loan Servicer Oversight Program
             
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