11.02.2013 - U.S: Tangled in housing bust, FHA seeks a hand
U.S. housing markets finally are improving, but taxpayers may not be off the hook yet. The Federal Housing Administration, a significant backer of new mortgage lending over the past five years, is facing billions of dollars in potential losses, as many loans that it guaranteed during the recession have soured. The agency's independent audit last fall showed that at its current pace, the FHA would exhaust its reserves and need $16 billion from the U.S. government to cover projected losses. That would be a blow because, since its creation in 1934, the agency has never required Treasury assistance. The FHA doesn't issue mortgages. Instead, it insures lenders against losses on loans that meet its standards, and charges fees to borrowers to cover any losses...............................................Full Article: Source
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