GAO Suggests Merger of FHA, RHS To Eliminate Overlaps, Cut Costs
May 29, 2015
Congress is considering streamlining the U.S. Department of Agriculture’s single- and multifamily housing programs as lawmakers expressed concern about reports of inefficiency, inflexible underwriting and weak risk management. In an oversight hearing conducted recently by the House Financial Services Subcommittee on Housing and Insurance, lawmakers also considered a suggestion to merge the USDA’s Rural Housing Service and FHA single-family mortgage insurance programs because of overlapping functions and certain similarities in their borrower profiles. “The process of dealing with RHS is a nightmare,” said Blaine Luetkemeyer (R-MO), vice chairman of the committee. “It is 2015 but we have a housing program that operates like it is 1975.” Complaints against the RHS include little or no accountability across government programs, significant lack of ...