Monday, November 19, 2012

FHA could need bailout

What is it with Government--doesn't anyone know how to run a solvent operation anymore? The Feds?--the worst Hogs at the Trough--

FHA projected to exhaust reserves, could need bailout - latimes.com: The Federal Housing Administration, which has played a crucial role in stabilizing the housing market, said it ended September with $16.3 billion in projected losses -- a possible prelude to a taxpayer bailout. The precarious financial situation could force the FHA, which has been self-funded through mortgage insurance premiums since it was created during the Great Depression, to tap the U.S. Treasury to stay afloat. The agency said a determination on whether it needs a bailout won't come until next year. . . .  The FHA has permanent and indefinite authority to draw money from the Treasury, although it has never had to use that power."

Never had to use that power--until now.

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