NY Times: FHA Headed For Same Fate As Fannie, Freddie
Let me simply state at the outset that based on current projections, absent any catastrophic home price decline, F.H.A. will not need to ask Congress and the American taxpayer for extraordinary assistance – we will not need a bailout.
– David Stevens, F.H.A. Commissioner
It appears destined for a taxpayer bailout in the next 24 to 36 months.
– Edward Pinto, Former Chief Credit Officer, Fannie Mae, 1987-1989
I knew in my heart I could not really afford the house, but they gave it to me anyway. I thought ‘Wow, I’m surprised I pulled that off.’
If I got unemployed, I’d be wiped out in a month or two.
– Chaz Fullenkamp, an automotic technician in Colombus, OH who used an FHA loan to buy a home this spring for $179,000
The government is doing what it needed to do – taking a risk on people.
– Bernadine Shimon, a high school English teacher in Denver, who bought a $134,000 home in August using an FHA loan. Ms. Shimon’s $1100 mortgage payment is half of what she takes home every month.
Source: “F.H.A. Problems Raising Concern of Policy Makers”, David Streitfeld and Louise Story, The New York Times, October 9, A1