A report supported by the conservative American Enterprise Institute says the FHA could need from $50 billion to perhaps $100 billion in taxpayer assistance.
Actually, the FHA saw its reserve increase slightly in fiscal 2011 and hopes to reach the required reserve amount by fiscal 2014.
The mortgage industry worries that, oh my, the FHA may be "over-utilized" -- their expression. The idea is to reduce FHA activity, thus leaving more to private-sector lenders, mainly huge banks. At the same time, lenders want the FHA to continue to provide 100 percent loss insurance -- and nothing less. They also want higher loan limits to assure financing for the upper class.
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A report supported by the conservative American Enterprise Institute says the FHA could need from $50 billion to perhaps $100 billion in taxpayer assistance.
Actually, the FHA saw its reserve increase slightly in fiscal 2011 and hopes to reach the required reserve amount by fiscal 2014.
The mortgage industry worries that, oh my, the FHA may be "over-utilized" -- their expression. The idea is to reduce FHA activity, thus leaving more to private-sector lenders, mainly huge banks. At the same time, lenders want the FHA to continue to provide 100 percent loss insurance -- and nothing less. They also want higher loan limits to assure financing for the upper class.
http://www.ourbroker.com/news/will-the-fha-go-bankrupt-111611/
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