The Federal Housing Authority is running a little short so the Treasury is advancing a small loan â not even $2 billion â to replenish an insurance fund. This is necessary, as Clea Benson of Bloomberg reports:
⦠after losses on defaulted mortgages depleted reserves.
But no big deal, nothing to be alarmed about. Be assured since:
FHA Commissioner Carol Galante said in a letter sent to Congress today [that] âThis required mandatory appropriation is an accounting transfer and does not reflect an up-to-date viewâ of the insurance fundâs âperformance, its long-term fiscal health or its current cash position. In the next few months we expect updated data and economic forecasts to reflect what we already know to be true — the health of the Fund has improved significantly.â
Yes. And we hear that Fannie Mae and Freddie Mac are doing just fine, too.
