FHA Leans On Treasury For 1st Time For $1.7B Fund Boost

Law360, New York (September 27, 2013, 3:35 PM EDT) -- The Federal Housing Administration told lawmakers Friday that it will need to draw $1.7 billion from the U.S. Treasury next week in order to buttress its Mutual Mortgage Insurance Fund, marking the first time it will lean on the Treasury in its 79 years.

The amount is nearly double the $943 million that the White House in April estimated the FHA would need to supplement its reserves, but in a letter to ranking members of the Senate Banking, Housing and Urban Affairs Committee, FHA Commissioner Carol...
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