Resolution Trust Corporation. Oversight of Certain Loan Servicers Needs Improvement,

We analyzed data compiled by RTC to determine the number and value of mortgages and loans serviced by inherited loan servicers. We reviewed policies and procedures issued by RTCs headquarters and visited RTCs four regional offices and consolidated field offices in Atlanta Dallas Denver Kansas City, Mo. Tampa and King of Prussia, Pa., to review and document field office policies and procedures for oversight of inherited servicers. To assess RTCs controls over the inherited servicers loan collections, we reviewed information the servicers reported to RTC and interviewed wro staff responsible for receivership asset operations at the six consolidated offices we visited. We did not visit servicers or review the servicers internal control procedures. In addition, we did not obtain information or data from those thrifts that were in conservatorship at the time of our review. To assess the acceptability of RTCs inherited servicers, we relied on mortgage servicing criteria developed by Fannie Mae. These criteria are generally accepted by financial institutions involved in mortgage finance. We reviewed Fannie Maes mortgage servicing guidelines and discussed servicer eligibffity requirements with Fannie Mae officials. Because RTC did not have a complete nationwide list of inherited servicers, we obtained a list of servicers for RTCs 31 Florida receiverships, which was compiled by ircs Tampa Consolidated Field Office, to determine their status under Fannie Maes servicer requirements. KAR