19.11.2012 - U.S: Housing agency woes offer chance to fix market
For the first time in its 78-year history, the U.S. Federal Housing Administration might need a government bailout. The agency’s most recent audit, released last week, reveals it is burdened by a $16.3 billion deficit in the value of its insurance fund, primarily on loans it backed ahead of the housing market’s collapse. The audit also reveals -- or should remind us -- that the federal government’s role in the mortgage market is outsized and should be reduced. The FHA’s troubles are largely a result of the housing party hangover, including defaults from a questionable program that allowed sellers to cover the down payment on behalf of buyers, often by inflating the price of the home...............................................Full Article: Source
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