"The Federal Housing Administration, which has played a crucial role in stabilizing the housing market, said it ended September with $16.3 billion in projected losses—a possible prelude to a taxpayer bailout…. The FHA does not lend money, but guarantees loans made by banks in exchange for insurance premiums. The agency's role has expanded since the crash of the subprime mortgage market, and it now insures about $1.1 trillion in loans."
—Well, well, well. Look, we found the one thing no one wants to privatize! And let's hear it for the free market! "The report blamed the fund’s losses largely on loans in which sellers were allowed to cover the down payment on behalf of the buyer, often by inflating the price of the house."
Friday, November 16th, 2012