Summary: Pursuant to a congressional request, GAO reviewed the Resolution Trust Corporation's (RTC) activities in Houston, Texas, focusing on: (1) thrifts and real estate assets placed under RTC control; (2) high-value real estate property managers and their salaries; (3) real estate assets that RTC sold and the purchasers of sales over $1 million; and (4) the number of real estate agents that RTC qualified for contracts, and for those disqualified, the reasons why.
GAO found that: (1) there were 5 RTC-controlled thrifts in the review area, with total assets of about $3.8 billion; (2) as of March 31, 1990, the RTC real estate inventory listed approximately 1,614 properties in the review area; (3) as of March 31, 1990, RTC had sold 195 properties, with 10 sales of $1 million or more; (4) as of August 8, 1990, 2,598 brokers were registered to handle RTC-controlled property; (5) as of March 31, 1990, RTC had employed property managers to manage 79 of 138 high-value assets, with management fees and contracts varying by property; and (6) RTC monthly payments for management services ranged from $300 for a commercial office building to $5,500 for an apartment complex, and the remaining assets did not necessitate ongoing management or oversight. GAO also found that: (1) RTC procedures did not require real estate agents to register, but did require brokers to register with it, since state laws and regulations required agents to work through licensed brokers; and (2) as of July 31, 1990, RTC had not disqualified any brokers or contractors interested in handling RTC property.
