Posted on 10/08/2009 2:31:41 PM PDT by AngelesCrestHighway
WASHINGTON — First it was Fannie Mae and Freddie Mac. Now concern is growing that another government mortgage giant might teeter, just as the nation’s housing market is stabilizing. A year after Fannie and Freddie were effectively nationalized, problems at the Federal Housing Administration are raising worries among industry executives and Washington policy makers. In testimony before a House subcommittee on Thursday, the F.H.A. commissioner, David H. Stevens, assured lawmakers that his agency would not need a bailout and that it was taking steps to manage its risks. “I’ve already begun to improve portfolio analysis and risk management,” Mr. Stevens said. “We’ve made more significant credit policy changes in my first two months here than F.H.A.’s made in decades.” But he acknowledged that some 20 percent of F.H.A. loans insured last year — and as many as 24 percent of those from 2007 — faced serious problems including foreclosure, offering a preview of a forthcoming audit of the agency’s finances.
(Excerpt) Read more at nytimes.com ...
Fannie and Freddie employees are essentially ACORN workers. It is a make work project. They have no clue what they are doing. Incredible corruption. Ditto any govt or quasi govt agency like CDC, NIH, NASA - you name it.
How many shoes drop before we keelhaul Frank and Dodd?
Pitchforks and torches time for sure!
Just the shoes in their family. They do NOT concern themselves with yours. We have not seen the worst of this. More for sale signs, more banks holding on to properties and not listing them. No such animal as a jobless “recovery”.
In the past houses were just repossessed, completely renovated with new carpeting, new roof, etc. and put on the market at a very good price. It gave people an opportuinity to jump into the housing market.
I’m sort of sad over this. Our first home was bought with and FHA loan. We didn’t have much for a downpayment, but we bought a small home that we could afford the monthly payments on. It gave us our first step into homeownership.
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