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BAILOUT! Federal Housing Administration $16.3B in Red

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.

Read more: http://www.latimes.com/business/money/la-fi-mo-fha-federal-h...

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