PEER reviewed the loan processing, loan servicing, and management functions of the Veterans’ Home Purchase Board (VHPB). VHPB’s loan processing system is unnecessarily long-six times longer than that of private lenders. The program is not adequately publicized, even though the law requires all veterans to have equitable access to the program. VHPB’s loan servicing system suffers from major internal control weaknesses. In addition, VHPB has failed to comply with its delinquency/collection policy, has not developed procedures for selling repossessed property, and has not accurately accounted for escrow payments. PEER notes that VHPB’s weaknesses result primarily from the staff’s lack of prior experience or training in mortgage lending.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.