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Article: FHA runs low on cash, fueling bailout concerns ; Fears hit if prices slipBut audit sure of solvency
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- November 13, 2009
- Author:
CopyrightCopyright 2009 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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WASHINGTON - The Federal Housing Administration, which propped
up the collapsing housing market last year, acknowledged yesterday
that it has drained its cash reserves to dangerously low levels,
heightening concerns that it might need a taxpayer bailout.
The agency, which guarantees loans for many first-time
homebuyers, could be hit if housing prices lose ground or if a new
wave of mortgage defaults, triggered by double-digit unemployment,
crashes into the market in the coming months.
If the FHA runs into financial trouble, it could make it more
difficult for borrowers to get loans, particularly first-time
buyers.
Housing Secretary Shaun Donovan said while an independent audit
showed that ...