Think the bailouts are over? Think again! The Federal Housing Administration could become the next Fannie Mae.
Reports the New York Times:
Problems at the Federal Housing Administration, which guarantees mortgages with low down payments, are becoming so acute that some experts warn the agency might need a federal bailout.
Running questions about the F.H.A.’s future — underscored by interviews with policy makers, analysts and home buyers — came to the fore on Thursday on Capitol Hill. In testimony before a House subcommittee, the F.H.A. commissioner, David H. Stevens, assured lawmakers that his agency would not need a bailout and that it was managing its risks.
But he acknowledged that some 20 percent of F.H.A. loans insured last year — and as many as 24 percent of those from 2007 — faced serious problems including foreclosure, offering a preview of a forthcoming audit of the agency’s finances.
We’ve already spent about $13 trillion bailing out banks, financial institutions, automakers, insurance companies, and most everyone else. So what’s another few billion dollars among friends? As they say, it’s only money!