Original Blog Entry: "FHA Shortfall Seen at $54 Billion May Lead to Bailout (Update1)

konane — Thu, 08 Oct 2009 14:35:05 GMT

Seems the general public would begin to realize that if these entities were run correctly with good oversight and ethical accounting they wouldn't need bailouts.

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FHA Shortfall Seen at $54 Billion May Lead to Bailout (Update1)

By Jody Shenn

Oct. 8 (Bloomberg) -- The Federal Housing Administration, which insures mortgages with low down payments, may require a U.S. bailout because of $54 billion more in losses than it can withstand, a former Fannie Mae executive said.

It appears destined for a taxpayer bailout in the next 24 to 36 months, consultant Edward Pinto said in testimony prepared for a House committee hearing in Washington today. Pinto was the chief credit officer from 1987 to 1989 for Fannie Mae, the mortgage-finance company that is now government-run. .......

http://www.bloomberg.com/apps/news?pid=20601087 sid=aOmu318hOZr4

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