FHA Needs Overhaul To Stave Off Bailout, Congress Hears

Law360, New York (February 6, 2013, 9:34 PM EST) -- Financial and real estate experts on Wednesday urged Congress to revise current Federal Housing Administration policy and limit the agency's share of the mortgage insurance market to reduce the risk borne by consumers and prevent a potential government bailout of the cash-strapped agency.

At a hearing of the House Financial Services Committee, economists and real estate finance experts warned that the agency's risky lending profile and credit guarantee practices are pushing many homeowners into foreclosure and should be addressed through strict capital requirements, adjusted eligibility guidelines...
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