GOP Sens. Attack HUD Response To FHA Reserve Shortfall

Law360, New York (December 6, 2012, 3:12 PM EST) -- Several Republican senators on Thursday attacked the U.S. Department of Housing and Urban Development's allegedly inadequate response to bad loans on the Federal Housing Administration books, in the wake of a threatened bailout over a $16.3 billion shortfall in the agency's reserves.

The attack came as senators grilled Housing and Urban Development Secretary Shaun Donovan as part of a Senate Banking, Housing and Urban Affairs Committee hearing on the FHA's financial challenges, brought to light by the Nov. 16 release of an external audit showing the...
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