FHA faces Treasury draw for first time

The Federal Housing Administration actuarial report to Congress, expected this week, may show the need to tap Treasury to bulk up reserves to cover rising mortgage delinquencies. The potential draw is the first time in the 78-year history of FHA a bailout is needed, reported the Wall Street Journal.

A Treasury draw would put into question the government’s role in housing as it continues to attempt and stabilize the housing recovery. The government already spent $137 billion to bail out Fannie Mae and Freddie Mac.

Read on.

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