Lawmaker calls FHA ‘disaster in making,’ may require a bailout
The Federal Housing Administration, which backs about a third of US home loans, could require billions of dollars in taxpayer aid if the housing market continues to deteriorate, a Republican lawmaker said. The agency, which provides liquidity by protecting lenders against borrower defaults, could follow in the footsteps of Fannie Mae and Freddie Mac, the mortgage companies that were taken into government conservatorship in 2008, Representative Jeb Hensarling said at a House hearing today.
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