Obama administration officials said Friday that they are hopeful the Federal Housing Administration can avoid a bailout despite the agency’s increasingly troubled finances.
The FHA said it ended the latest fiscal year in September with $16.3 billion in projected losses, which could require an infusion of taxpayer money into the government agency for the first time in its 78-year history.
A final determination on a bailout would not come until next September and could hinge on continued improvement in the housing market, officials said. The agency also plans changes, including increasing the premiums it charges homeowners to back their loans.
JOIN THE DISCUSSION | Register here
We welcome comments. Please keep them civil, short and to the point. ALL CAPS, spam, obscene, profane, abusive and off topic comments will be deleted. Repeat offenders will be blocked. Thanks for taking part — and abiding by these simple rules. A thorough explanation of rules of conduct can be found in our Terms of Service. If you have any questions, including why your comment may not be showing immediately after you submit it, be sure to visit the commenting FAQ.