Report Summary

Title: Audit of VBA's Liquidation Appraisal Oversight in the Cleveland and Phoenix Regional Loan Centers
Report Number: 10-04045-124
Issue Date: 10/4/2012
City/State: Cleveland, OH
Phoenix, AZ
VA Office: Veterans Benefits Administration (VBA)
Report Author: Office of Audits and Evaluations
Report Type: Audits, Reviews & Evaluations
Release Type: Unrestricted
Summary: OIG evaluated the effectiveness of the VBA’s Loan Guaranty Program (Program) which paid just over $1.4 billion to acquire about 14,000 foreclosed real estate properties. We found improvement of liquidation appraisal oversight was needed at the Cleveland and Phoenix Regional Loan Centers. Comparable properties and sales price adjustments were not consistently reviewed to establish appraised value. Policies and procedures did not include sufficient criteria for loan center staff to evaluate every appraisal. The Program did not use an automated appraisal review tool and VA may not have paid fair and reasonable prices when acquiring properties. We recommended policies and procedures be revised, use of an automated appraisal review tool, implement a comprehensive risk management program, and revise the Program managers’ performance plans.