FHA boss: FHA is not the new subprime
By ALEX VEIGA (AP) – 1 day ago
SAN DIEGO — Federal Housing Administration Commissioner David Stevens said Saturday that concerns the agency is headed for the same financial trouble that snared Fannie Mae, Freddie Mac and the subprime sector are unwarranted.
Stevens made the remarks during a speech at the National Association of Realtors' annual conference and expo in San Diego.
His comments come days after the agency revealed its financial reserves have fallen to a dangerously low level due to more homeowners defaulting on their loans. The FHA does not make loans, but rather offers insurance against default.
That's led to mounting concerns that it will eventually need an infusion of cash like government-controlled mortgage finance companies Freddie Mac and Fannie Mae. Read more...
The Associated Press: FHA boss: FHA is not the new subprime
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