FHA may need $943 million bailout

[unhappycamper]

http://www.mcclatchydc.com/2013/04/10/188208/fha-may-need-943-million-bailout.html

FHA may need $943 million bailout
By JIM PUZZANGHERA AND E. SCOTT RECKARD | Los Angeles Times
Posted on Wednesday, April 10, 2013

WASHINGTON — The Federal Housing Administration helped stabilize the real estate market after the subprime bubble and lay the groundwork for the recovery - and now the bill for taxpayers might be coming due.

The Obama administration's proposed budget released Wednesday projected that the agency, which insures more than $1 trillion in mortgages, would need a $943 million bailout this year to stabilize its shaky long-term finances. It would be the first time the FHA, which is financed by the premiums it charges homeowners, has needed taxpayer funds in its 79-year history.

"If the FHA were a private financial institution, likely somebody would be fired, somebody would be fined, or the institution would find itself in receivership," said House Financial Services Committee Chairman Jeb Hensarling, R-Texas, who has been warning that the agency was overextending itself to boost the housing market. "Instead, the FHA is merrily on its way to becoming the recipient of the next great taxpayer bailout. It's outrageous."

The FHA already has authority to draw the bailout money from the Treasury and does not need congressional approval. A final decision would not be made until the fiscal year ends in the fall. Obama administration officials said it was not certain the agency would need any taxpayer money because policy changes at the FHA, including higher premiums, have helped improve the outlook from just a few months ago.

[Hestia]

1. Oh bullshit on someone being fired, fined or jailed. Like we have endless pockets to keep

bailing the institutions. Go to the wallstreeters, they have it all.