flexiblefullpage -
Currently Reading

Audit: Federal Housing Administration might need a bailout

Advertisement
billboard -
Economics

Audit: Federal Housing Administration might need a bailout

There is almost a 50 percent chance that the Federal Housing Administration (FHA) will need a taxpayer bailout, according to a government audit released today. 


By Mary Beth Nevulis, HousingZone Contributing Editor November 15, 2011
federal housing administration, FHA, housing market

There is almost a 50 percent chance that the Federal Housing Administration (FHA) will need a taxpayer bailout, according to a government audit released today and reported by the Los Angeles Times.


The FHA’s cash reserves are being depleted by the foundering housing market. The FHA insured about one in seven residential mortgages insure this year, according to the audit.


The reserves, which are not supposed to be below 2 percent of projected losses, continued to fall this year, dropping to 0.24 percent from the already seriously low level of 0.5 percent last year, the report said. The drop was caused by the FHA's cash reserves falling by $2.1 billion, to just $2.6 billion.


Read more about the bailout speculation here.
 

Related Stories

Data & Research

Guest Column: External Forces

NAHB's chief economist on what lies ahead for the custom home market?

Economics

Why Housing is Going to Eat the U.S. Economy

The need to more construction workers to satisfy new housing demand over the next five years could siphon employees and capital from other sectors of the economy.

Leadership

14 ways to maximize profits

To be more profitable, custom builders must focus on efficiency and cost savings, while looking for opportunities to publicize their work and expertise.

Business

Pending home sales hit highest point since 2010

The National Association of Realtors reported that pending home sales reached their highest point in nearly two years in January, according to a story on HousingWire.

Business

FHFA begins first transactions of REO rental program

The Federal Housing Finance Agency (FHFA) has begun the first pilot transaction of its program to turn foreclosed Fannie Mae and Freddie Mac homes into rental properties, according to HousingWire.

Business

McIlwain: 3 steps to help the housing market

With the housing market in a lethargic recovery, John K. McIlwain of the Urban Land Institute offers three ways to help revive the market.

Financial

Cleveland mortgage settlement money going toward demolition of vacant houses

A large portion of a multibillion-dollar settlement between the state of Ohio and several large mortgage lenders will go toward demolition of foreclosed, dilapidated houses in the Cleveland area instead of struggling families as intended.

Financial

Rising student debt hampers housing growth

A new report from Bloomberg indicates that first-time homebuyers are having difficulty securing loans thanks to student loan debt totals nearing $1 trillion.

Economics

House votes down payroll tax extension; no additional Fannie & Freddie fees for now

U.S. House votes not to extend payroll tax cut for two months; want full year instead

Technology

New homes suffering from too-low appraisals

The National Association of Home Builders (NAHB) reported on their blog that flawed appraisals might be preventing home sales.

Advertisement
boombox1 -
Advertisement
boombox2 -
Advertisement
native1 -

More in Category



Leadership

14 ways to maximize profits

To be more profitable, custom builders must focus on efficiency and cost savings, while looking for opportunities to publicize their work and expertise.


Advertisement
native2 -
Advertisement
halfpage1 -