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A three-day series by The Columbus Dispatch explored a little-known facet of the Federal Housing Administration's mortgage insurance, which, in addition the helping first-time home buyers obtain loans, insures $56 billion in outstanding loans for developers to build and renovate apartments for people of modest means. "Bad loans, no penalties" examined how developers who have defaulted on $8.5 billion in loans the past decade walked away without any liability, and continued to receive HUD money. Meanwhile, HUD dumps the failed mortgages by selling them to investors, leaving tenants caught in the middle.
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