SAN FRANCISCO (MarketWatch) — The Federal Housing Administration has exhausted its capital reserves and is currently running at a deficit of $13.5 billion, The Wall Street Journal reported late Thursday, citing an independent audit. The FHA, which is expected to release the audit on Friday, is the arm of the Department of Housing and Urban Development that insures home mortgages. The audit is expected to show the FHA’s reserves were not enough to cover losses on $1.1 trillion in guaranteed loans, and that the agency will need taxpayer funding for the first time in 78 years, according to the Journal.
lol… bend over people…..[/quote]
Duh . . . we should expect nothing more and nothing less than hearing that the FHA now needs a “bailout” for the first time in history! The writing was on the wall long ago. “Buyers” using its “flagship” 203b program to purchase a residence have on average a FICO score in the low 600’s :-0
