Finance Committee Chair Suggests FHA Could be Next Countrywide

Posted To: MND NewsWire

On Wednesday the House Financial Services Committee held the first of a scheduled series of hearings on the financial condition of the Federal Housing Administration (FHA) . A memo released by the Committee’s chairman Jeb Hensarling (R-TX) says that the FHA’s single-family insurance fund which insures more than $1 trillion worth of home mortgages , has a negative economic value of $16.3 billion, according to an independent actuarial report released in November which means that if the FHA stopped writing new business today, it could not cover the losses anticipated on loans it has already insured. Hensarling opened the February 6 hearing saying that, while the recently reported negative economic growth in the last quarter does not necessarily indicate a trend, subpar economic growth of 1-1/2…(read more)

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