FHA Needs A Bailout

The FHA stands for the Federal Housing Administration.

It is instituting new rules to try to forestall an appeal to Congress for a bailout.

The FHA wants to force banks to buy back thousands of troubled mortgages.

Kevin Chiu reports:

The federal government’s changes are part of an effort to improve mortgage lending conditions and reduce losses on home mortgages as result of billions of dollars in losses suffered at the nation’s mortgage giants, Freddie Mac and Fannie Mae.

FHA Commissioner Carol Galante said the changes will help the agency protect its mortgage insurance fund, which is in jeopardy of needing a government bail-out.

“FHA must continue to strike a balance between managing risks to its insurance funds and ensuring that FHA products are offered as widely as possible to qualified borrowers,” said Galante. “We hope that the added clarity and certainty provided through these rules will enable lenders to extend financing opportunities to larger numbers of American families as the nation’s housing market and economy continues to recover.”

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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