FHA’s Fund Shortfall Response Inadequate, Senators Say
This article is for subscribers only.
The Federal Housing Administration isn’t going far enough with plans to shore up its finances as it faces a projected $16.3 billion shortfall in its insurance fund, Senate Democrats and Republicans said today.
The government mortgage insurer announced last month it would raise premiums and sell off delinquent loans after disclosing it might need Treasury funds to balance its books for the first time in its 78-year history. Those and other actions the agency is taking might not be enough, senators including South Dakota Democrat Tim Johnson and Alabama Republican Richard Shelby said at a hearing of the Senate Banking Committee.