More bad financial news now.
The FHA (Federal Housing Administration) guarantees housing mortgages through mortgage insurance.
They must maintain a certain level of "cash" in order to pay off mortgage defaults.
It looks like they have a "projected" $16.3 billion loss for September.
And they have teetering for a few years.
The alarm bells are sounding.
So much for the housing "recovery".
I wonder how much corruption, graft, and ghost payments and over payments for salaries, consulting fees, and internal and external "costs" exist
within the agency itself ?
WASHINGTON -- 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.
Another warning sign from another failed Federal agency ?
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 is required to maintain enough cash reserves to cover losses on the mortgages it insures. But in its annual actuarial report to Congress, the
agency said a slower-than-anticipated housing market recovery has led its reserves to fall $16.3 billion below anticipated losses................
FHA projected to exhaust
reserves, could need bailout