Federal Housing Administration
The Federal Housing Administration is in deep trouble. According to its 2012 annual audit report, the FHA’s economic value or capital position is negative $13.5 billion. For the fourth consecutive year, the FHA has failed to meet its congressionally mandated minimum capital standard of 2 percent or $23 billion. One in six FHA loans are delinquent 30-days or more, and this number is growing. These new findings should be cause for significant concern to Congress and taxpayers. Monitor FHA’s position here through Ed Pinto’s FHA Watch series and learn what needs to be done to right the FHA’s listing ship.
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Experts from the US, Europe, and Canada will address efforts and proposals to moderate housing cycles by using countercyclical lending policies.
Although there seems to be a near-consensus that Fannie Mae and Freddie Mac should be eliminated, there is no consensus on what should replace them. History should tell all of us that the PATH bill is the way to go.
Earlier this month, House Financial Services Committee Chairman Jeb Hensarling (R-TX), along with subcommittee chairs Scott Garrett (R-NJ), Randy Neugebauer (R-TX), and Shelley Moore Capito (R-WV), unveiled the Protecting American Taxpayers and Homeowners (PATH) Act of 2013. Title II encompasses the most significant and common-sense FHA reform legislation in memory.
The House Financial Services Committee will hold a hearing on Thursday to consider draft legislation for housing finance reform put forward by its chairman, Jeb Hensarling, Republican of Texas, that would end the taxpayer backstop on mortgages now provided through Fannie Mae and Freddie Mac and wind down the two companies over five years.
Taxpayers received $66 billion of good news last Monday in the form of dividends to the Treasury from Fannie Mae and Freddie Mac as part of the compensation for the bailout of the two government-sponsored enterprises (GSEs). The bad news is that these payments reflect the fact that the two...
What should be done with Fannie Mae and Freddie Mac is the biggest question of the $10 trillion, post-crisis American housing finance sector.
It would be easy to love Corker-Warner, a bill that gets rid of Fannie Mae and Freddie Mac—unless it fosters the same loose lending that led to the housing debacle. By keeping the government in charge, this bill does just that.
