Bailout for Federal Housing Authority inevitable

fha bailout

FHA bailout looming.

With the government’s explicit guarantee of mortgages a bailout appears to be inevitable for the Federal Housing Authority. This should not be surprising news to anyone who follows the mortgage market closely, but a new study by Wharton finance professor Joseph Gyourko makes this conclusion clearer. As a bailout for the FHA looms, Congress will likely become enraged again — on behalf of the taxpayers they represent. What impact would an FHA bailout have on the housing finance policy debate?


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U.S. economic uncertainty is the new normal

economic uncertainty

Many Americans are focused on bargains and careful to spend money only when they need.

Financial fears of most Americans seem to be adding to the nation’s economic woes.  The recession. The financial crisis. The housing crisis. The persistently high unemployment rate. And now, the debt debacle.  No wonder American’s feel uncertain about the U.S. economy.


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