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.
Discover Federal Housing Administration Content
FILTER BY DATEAll Time
FILTER BY RELEVANCEMost Recent
FILTER BY CONTENT TYPEAll Content Types
By politicizing the allocation of mortgage credit beyond the level that was possible with Freddie and Fannie, the bill proposed by Sen. Tim Johnson and Sen. Mike Crapo manages to make the affordable-housing provisions of current policy worse.
Everybody talks about fixing the problem of Fannie Mae and Freddie Mac, but it is hard to make anything actually happen. I propose for immediate action to treat Fannie and Freddie exactly like a Too Big To Fail (TBTF) bank.
The draft bill released on Sunday, March 16 by Senate Banking Committee Chairman Tim Johnson (D-S.D.) and Ranking Member Mike Crapo (R-Idaho) will not protect taxpayers from future bailouts.
Policymakers concerned about inequality should look no further than federal housing finance policies that continue to target America’s working-class families and communities with risky lending practices.
The Consumer Financial Protection Bureau’s (CFPB’s) new rules for mortgage lending practices will not deter predatory lending and will significantly increase many small banks costs of mortgage lending.
The legislative outline released yesterday by Senate Banking Committee Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID) will not protect taxpayers from future bailouts. The proposed legislation will almost certainly include a new explicit government guarantee for a large swath of the home mortgage market.
Loan risk is at a higher level than is conducive to long-run market stability. Despite frequent assertions by the National Association of Realtors and other interest groups that the national credit box is too tight, the facts indicate it is loose by historical standards for prudent lending and is getting looser.