FHA Can Avoid Gov't Bailout, Commissioner Testifies

Law360, New York (February 13, 2013, 9:06 PM EST) -- The Federal Housing Administration does not need a so-called bailout, and is taking steps to “recede” from the mortgage market as private lenders slowly return, FHA Commissioner Carol Galante told the House Financial Services Committee on Wednesday.

During a three-hour hearing in which House Republicans and Democrats peppered her with questions about the November audit revealing a $16 billion shortfall in the agency's reserves thanks to mortgage delinquencies, Galante outlined the loss mitigation measures the FHA has taken in the last three months and asked for...
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