FHA Won’t Need Aid Because of Bank Settlements, Galante Says
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The Federal Housing Administration, beset with dwindling reserves and failing loans, won’t require an infusion of government aid thanks to last week’s legal settlements with mortgage lenders and servicers, Acting Commissioner Carol Galante said.
A budget plan sent to Congress today projected that the FHA could require as much as $688 million from the U.S. Treasury Department to remain solvent. It would be the first cash infusion in the agency’s history.