Wednesday, November 7, 2012

Another bailout

"Federal housing policy, understandably, these last several years has focused on preventing mortgage foreclosures, not just on initiating them. Yet the Federal Housing Administration (FHA), despite efforts to stem the tide by the Obama administration, has grown into a fiscal black hole in the wake of the 2007-08 mortgage industry collapse and the subsequent tightening of credit standards for conventional loans. FHA-insured loans, according to a recent study, account for 30 percent of purchases of new homes and close to 20 percent of purchases of existing homes, far above historical norms. Many are at risk of foreclosure. An FHA "short sale" program designed to enable borrowers to avoid foreclosure has experienced substantial fraud. FHA, severely undercapitalized, faces a potential taxpayer rescue that in fact already may have begun."

Our government needs to bail out the people not the people that caused this mess

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