US FHA Could Need A $943-M Taxpayer Bailout.

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Wow, a week has barely passed since Obama, brought it out to the American people by stating  he wanted toreintroduce the homes loans for those who didn’t have the credit and or income to be able to get a loan; and now the FHA needs $943 million something in a Bailout.   HUGE BIG FAIL !  shera~

The US Federal Housing Administration is likely to require a $943-M taxpayer bailout to cover expected losses from loans it insured when the US housing bubble burst , the Obama administration said last Wednesday.

It would be the 1st bailout of the government’s mortgage insurer in its nearly 80-yr history.

Housing Bubble, Financial Crisis – What Happened, Who is Responsible

“I don’t mind cleaning up the mess that some other folks made, that’s what I signed up to do” – Barack Obama (D-IL), October 20, 2009

“I think that the responsibility that the Democrats had may rest more in resisting any efforts by Republicans in the Congress, or by me when I was President, to put some standards and tighten up a little on Fannie Mae and Freddie Mac.” – Former President Bill Clinton (D-AR), September 25, 2008

“Like a lot of my Democratic colleagues I was too slow to appreciate the recklessness of Fannie and Freddie. I defended their efforts to encourage affordable homeownership when in retrospect I should have heeded the concerns raised by their regulator in 2004. Frankly, I wish my Democratic colleagues would admit when it comes to Fannie and Freddie, we were wrong.” – Congressman Artur Davis (D-AL) , September 30, 2008

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President Obama is using the financial crisis to make Americans doubt themselves, their values, and the very system they had believed enabled their specialness.  In the vacuum of this doubt, he is moving his agenda to radically alter the fiber of what it means to be American. – TJ Hancock (American)

The FHA has struggled to manage a glut of delinquent mortgages, that being the case it will likely need the funds given a shortfall in its reserves, the administration said in President Obama’s F-Y 2014 budget proposal.

FHA Commissioner Carol Galante said the agency might still be able to avoid taking aid from the US Treasury despite the projected budget hole. The agency has until 30 September to decide whether it needs a cash infusion.

“FHA, while still under stress from legacy loans, has made significant progress and is on a sound fiscal path forward,” Ms. Galante told reporters on a conference call. “We are continuing to act and do everything possible to ensure that the impact of these legacy loans … are corrected as soon as possible.”

The FHA is required by Congress to keep enough cash on hand to cover all expected future losses and must take a taxpayer subsidy if its projected revenue falls short.

The agency provides liquidity to the housing market by insuring lenders against losses on loans. Currently, it backs $1.1-T of loans and is a primary source of funding for first-time home buyers and those with modest incomes.

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