The Office of the Comptroller of Puerto Rico issues a favorable opinion with exceptions on the fiscal operations related to the mortgage and multifamily loans of the Puerto Rico Housing Finance Authority.
As of December 31, 2016, the AFV had $3.4 million in arrears on the 704 mortgage loans granted for $34 million. The Report reveals that effective collection efforts were not made, such as: collection calls, sending late charge letters, and several default judgment and foreclosure processes ordered by the courts for the collection of money were not completed, among other reasons. This situation deprives the AFV of having the necessary economic resources and fosters the accumulation and increase of overdue amounts.
The audit notes that the AFV had not registered 69 contracts in the Registry of Contracts of our Office, some since 2012, as provided by Act 18 of 1975 and Regulation 33. In addition, documents and evidence were missing in the files of the contracts granted by the Secondary Market Program. These situations, contrary to the Third Party Origination Program Policy do not allow exercising adequate control of the processes and limited our oversight work.
The Report covers the period from July 1, 2012 to June 30, 2017.
See Audit Report CP-18-09.
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