House Republicans warn Obama admin on troubled housing agency

[thundley4]

WASHINGTON (Reuters) - A pair of House Republicans on Wednesday warned the Obama administration that Congress does not have the appetite for a bailout of the financially strapped Federal Housing Administration.

"If not addressed promptly, problems at the FHA may result in yet another massive taxpayer-funded bailout that this country cannot afford and which the American people will not accept," wrote Republicans Darrell Issa of California and Spencer Bachus of Alabama in a letter, released Wednesday, to Housing and Urban Development Secretary Shaun Donovan.

The FHA, a division of HUD, announced in September that its capital reserve ratio is expected to fall below the congressionally mandated 2 percent this month.

*snip*

Because about 80 percent of the FHA's business is with first-time home buyers, who typically have smaller down payments, its role in the housing market is vital, he said.

Reuters

How many of those first time home buyer loans also include people who used the tax credit this year?  Are we going to be seeing more defaults on these loans in the near future?

[zeitgeist]

Oh dear  thundley4, Barney is going to be verrry Fraank with you for posting this.

[Chump]

Because about 80 percent of the FHA's business is with first-time home buyers, who typically have smaller down payments, its role in the housing market is vital, he said.

 

No, it's a burden, an obstacle, a blunder, and an unnecessary, detrimental waste.  Way to be late to the party, too, Mr. Issa.  The FHA's problems have been screamed from the roof-tops for nearly 6 months now.  Beyond that, it's a symptom of faulty and irrational thinking.  First-time home buyers are not some special group that needs special help from you special simpletons in Congress.  They're buying a home, period, and the requirements and necessary financial position are the same as for any other home-buyer.