The Real Reason the FHA Doesn’t Need a Bailout

… via The Real Reason the FHA Doesn’t Need a Bailout — Seeking Alpha….Because as law is currently written FHA can go directly to Treasury and get the money….When the FHA needs funds from the taxpayer there will be no request to Congress….

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The Real Reason the FHA Doesn’t Need a Bailout

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    Related results on The Real Reason the FHA Doesn’t Need a Bailout

    1. But even with Bailout bucks, loss leverage could quickly kill remaining capital. So what is really going on? These guys need help beyond bailout bucks. Enter the FED. Allow the Banks to pump some worthless MBS crap through the GSEs, ... The real price, as you so rightly observe, being "buy treasuries or we turn off the tap". So the game is ramped up a rather big notch. Namely to the moment when/if the USA hits cash flow reality. That is the reason (in my and obviously ...

    1. FHA-insured mortgages currently require the lesser percentage, but some leaders -- anxious to avoid another bailout -- think the agency would be on stronger footing if it upped the down payment to 5 percent. .... The FHA is making loans to people with low credit scores and minimal down payment. Doesn't the FHA get their money from the taxpayers? So I, a taxpayer, am being put in the position of lending money to those who really do not qualify for loans. I got a idea. ...

    1. For of all, we are looking at around $600 Billion in taxpayer bailout, assuming the market doesn't take another sharp downturn. That's nothing to sneeze at, and it certainly deserves a lot more press coverage than it has gotten. ... Homes worth nearly 3/4 of a million dollars are not part of the original reasons why Fannie Mae and Freddie Mac were created, nor should they be. People that can afford homes of that price do not need public subsidies, nor should they get it. ...