The U.S. Department of Agriculture’s (USDA) Rural Development agency’s mission is to help improve the economy and quality of life in rural America. Rural Development’s Single Family Housing Direct Loan Program supports rural residents who seek mortgage credit by making and servicing direct loans to very-low and low-income borrowers. In fiscal year 2015, the total outstanding principal balance of the agency’s direct loan portfolio was approximately $16 billion.
USDA OIG found that, although Rural Development timely reported Single Family Housing Direct Loan Program repayment information to the credit bureaus, approximately 30,000 borrower accounts, with a total outstanding balance of over $1 billion, were either transmitted inaccurately or improperly excluded from reporting.
In addition, OIG found 153 borrower accounts, with a current balance of $8.8 million, where the dates of birth indicated the primary borrowers as under 18 years of age. Two borrowers were listed as having birthdates in the year 2085.