The Federal Housing Administration's insurance of mortgages in 2009-10 - after the sub-prime...

|By:, SA News Editor

The Federal Housing Administration's insurance of mortgages in 2009-10 - after the sub-prime blowout - was too risky and could generate losses of $20B, an analysis of 2.4M FHA-insured loans shows. The study, by Edward Pinto of the conservative American Enterprise Institute, follows the recent FHA annual report, which showed projected losses of $16.3B and made a bailout of the agency increasingly likely.