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The FHA rolls out stricter lending requirements and higher borrowing fees in order to shore up...

The FHA rolls out stricter lending requirements and higher borrowing fees in order to shore up its finances and avoid a taxpayer bailout. The FHA's reserves to cover losses have fallen to 0.5% of the $685B in loans outstanding, down from 3% a year ago and below the 2% capital-reserve ratio required by Congress.
Comments (4)
  • inthemoney
    , contributor
    Comments (981) | Send Message
     
    At 0.5% to cover losses, when even last year FHA was issuing loans with as little as $100 down, it would seem that another bailout is pretty much guaranteed.
    20 Jan 2010, 09:04 AM Reply Like
  • j_remington
    , contributor
    Comments (1343) | Send Message
     
    Basically, the FHA is insolvent.
    20 Jan 2010, 09:15 AM Reply Like
  • buybuybear
    , contributor
    Comments (389) | Send Message
     
    If they had only implemented stricter requirements in the first place...
    20 Jan 2010, 10:22 AM Reply Like
  • nightfly
    , contributor
    Comments (1017) | Send Message
     
    FHA is insolvent. Heck, the US is insolvent.
    20 Jan 2010, 12:13 PM Reply Like
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