A question about the FHA: why does nobody chalk up the agency's failure to blind greed and compensation structure?
Because if it were a private organization, with executives making multi-million dollar bonuses, those exectuvies be AIG-like pariahs, with the kind of performance it's exhibited.
WSJ: The FHA has said for months that its reserves for unexpected loan losses would fall short of the required 2% level by this fall. But an audit of the FHA released Thursday showed that reserves have been depleted much faster than the agency and analysts had expected. The FHA's capital-reserve fund fell to $3.6 billion as of Sept. 30, down 72% from a year earlier, leaving reserves at just 0.53% of the $685 billion in total loans insured by the FHA.
Administration officials said the losses, while large, come as the FHA is helping to heal the housing market. "That reserve account is playing exactly the role that Congress intended it to," said Shaun Donovan, secretary of Housing and Urban Development. Read the whole thing >
Join the conversation about this story »
See Also:
- FHA Delays Audit, Yet Another Bailout Coming Your Way
- Edward Pinto: Ending The FHA's Continuing Nightmare Of Foreclosures
- The FHA Is Doomed: Huge Bailout Coming
Full story at http://feedproxy.google.com/~r/businessinsider/~3/ksr41mkp2oc/fha-reserves-collapse-much-faster-than-feared-2009-11
Posts
No comments:
Post a Comment