GRAVY TRAIN: HUD Let Nearly $2 Billion Go To People Barred From Getting Federally Protected Loans.

The loans were distributed in 2016 to 9,507 borrowers who were either delinquent on federal debt or hadn’t paid their child support, according to HUD’s inspector general (IG). The IG reviewed 60 of the nearly 14,000 loans Federal Housing Administration (FHA) closed in 2016 and found more than three-quarters were given to barred borrowers.

“FHA faced a higher risk due to an increased likelihood of default on the ineligible loans,” the report said. The borrowers had a delinquency rate “twice as high as those of the general population.” (RELATED: At Least A Quarter Of Every Tax Dollar For HUD Grants May Be Wasted)

The agency’s guidance prohibits lenders from giving out FHA-insured loans to borrowers with delinquent federal debt, according to the IG report.

The sources lenders used “to identify ineligible borrowers lacked sufficient current information, and FHA did not adequately guide lenders on reviewing child support,” the report said.

This happened during Barack Obama’s “amazingly scandal-free” administration.