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The Federal Housing Administration running out of money and guess who could be bailing them out.
Once again today lawmakers are digging deeper into the state of the FHA Peter Barnes is on Capitol Hill with the very latest on this another bailout Peter.
May be dividend -- and that's what this hearing was about to try to figure out if the FHA is going to be another Fannie or Freddie they got 150000000180.
Billion depending on how you count it.
But here the numbers for the FHA in November.
It reported an economic value of negative sixteen point three billion dollars that basically means that it's got a sixteen billion dollar capital shortfall -- its capital reserve because of mortgages going bad.
But one fed one FHA critic rather Ed Pinto of the American Enterprise Institute testified this morning.
That by his analysis the FHA is down by more than fifty billion dollars so.
Critics say that a bailout of the FHA is coming.
But supporters of the FHA say the critics are hyperventilating.
FHA or private financial institutions likely somebody would be fired somebody would be fine to the institution -- -- itself in receivership.
Instead it is merely an merrily on its way to becoming the recipient of the next great taxpayer bailout.
I don't think there are many independent people who think that we're looking the next great bailout.
Yes the FHA is a little bit of the issue with the moment because of its -- cyclical mission.
By the way it was pot of -- -- regional mission.
To come in during difficult times they did did that and they are in trouble because of it.
-- critics hope the hearing a loyal lay the ground work for another shot at legislation to try and reform the FHA in the meantime just last week.
The agency took more steps to try to shore up its finances including.
Raising its premiums yet again adopting other reforms.
Supporters say the -- agency does have billions of dollars of cash on hand.
To tide it over end short run whatever that isn't.
-- few years and in the meantime they say they hope that these higher premiums than these -- other changes will help to.
Restore its finances as the housing market recovers and it under -- more mortgages David -- Here shades of Fannie and Freddie that they've sort of tearing sound exactly -- He executed it very much OK well.
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