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Project: GAO Risk Management Audit and Credit Committee Procedures

Agency: U.S. Department of Agriculture (USDA), Single-Family Housing Guarantee Loan Program (SFHGLP)


Falcon was engaged to review USDA’s Single Family Housing Guaranteed Loan Program credit policies and business processes to ensure compliance with OMB standards (A-123 and A-129) and GAO’s most recent recommendations.


Activities under this contract included the following:

  • Develop a charter and written policies and procedures for the Credit Policy Committee (CPC) process, consistent with federal internal control standards

  • Document the CPC’s purpose, scope, membership, and decision making process

  • Provide guidance on best practices for preparing CPC agendas, meeting minutes, and results

  • Develop requirements for the principal officers of lenders and servicers seeking initial or continued approval to participate in the program

  • Develop capital and financial requirements for guarantee program lenders that are not regulated by a federal financial institution regulatory agency

  • Develop policies and procedures for the eligibility reviews of lenders and servicers participating in the program

  • Document the lines of communication between the different components of the program’s risk management structure

  • Develop risk thresholds for the guarantee program, including both portfolio and loan level loss tolerances, key performance indicators, and metrics