The FHA Is Fine and Won't Need Taxpayer Money
FHA Commissioner David Stevens defends the agency's role in the housing recovery, noting that the it continues to hold more than $30 billion in reserve funds and is insuring more lower-risk borrowers. In a letter to the editor, in response to the Sept. 29 editorial "Subprime Uncle Sam," Stevens calls the piece's comparison of FHA to the subprime market "misleading" because the FHA's serious delinquencies are a third of those in the subprime market. He adds that declining home prices will not trigger a loss of $100 billion for taxpayers because the FHA did little business in states like Arizona, California, Florida, and Nevada; nor will it lead to congressional action.
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From "The FHA Is Fine and Won't Need Taxpayer Money" Wall Street Journal (10/07/09) P. A20; Stevens, David
Source: MHI Newswire