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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