Rural Housing: Impact of Refinancing and Selling FmHA (Farmers Home Administration) Section 502 Homeownership Loans

摘要

The Omnibus Budget Reconciliation Act of 1986 requires the Secretary of Agriculture to sell rural housing loans in amounts sufficient to reduce fiscal year 1987 outlays by over $1.7 billion. GAO believes that greater savings could be achieved through refinancing section 502 loans because refinancing, compared with loan sales, should increase revenues. To meet the targeted outlay reduction, GAO believes that priority should be given to refinancing section 502 loans. However, the Congress would have to amend the Omnibus Budget Reconciliation Act of 1986 in order to count refinancing proceeds toward the targeted outlay reduction.