BAILOUT! Federal Housing Administration $16.3B in RedSubmitted by emalvini on Fri, 11/16/2012 - 19:07
BAILOUT! Federal Housing Administration $16.3B in Red
This post has been corrected. See the note below for details.
[For the Record, 5:13 a.m. Nov. 16: A previous version of this post referred to the FHA as the Federal Housing Agency. It is the Federal Housing Administration.]
By Jim Puzzanghera
November 16, 2012, 4:46 a.m.
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.
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.
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