**GAO-08-60**                      Published: Nov 15, 2007. Publicly Released: Dec 17, 2007.                  

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## Highlights

In 2003, the Department of Veterans Affairs (VA) significantly revised its in-house approach to managing and selling properties that become subject to foreclosure proceedings due to defaults by veterans on mortgages guaranteed by the department. VA contracted this function out to a private firm--Ocwen Financial Corporation (Ocwen)--after determining that doing so would increase the program's efficiency. VA oversees the Ocwen contract, which terminates in 2008, through onsite property inspections and other means. GAO was asked to (1) describe VA's inspection and other oversight findings and (2) evaluate VA's overall contract oversight program to determine whether any lessons can be learned prior to the implementation of the next contract in 2008. Among other steps, GAO reviewed VA inspection reports, accompanied VA staff on visits to three states, interviewed VA and Ocwen officials, and compared VA's procedures to those of other organizations that manage foreclosed properties.

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## Topics

Veterans

Contract administrationContract oversightContract performanceFederal procurementFederal property managementForeclosuresHousing programsInformation managementInformation systemsInternal controlsMaintenance (upkeep)Property disposalReporting requirementsGovernment agency oversightWaste, fraud, and abuse