FHA expected to need up to $1.5B in first-ever taxpayer bailout

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Facing a budget shortfall this year, the Federal Housing Administration is expected to ask later this month for $1 billion to $1.5 billion from the Treasury Department to help balance its books, American Banker reports.

The expected budget shortfall, American Banker notes, comes almost completely from losses in the FHA’s reverse mortgage program. Reverse mortgages it had paid to seniors who defaulted on properties when they could no longer pay taxes or insurance accounted for a bulk of the loss.

It would be the first time in the agency’s 79-year history to get bailout funds from the Treasury.

Source: American Banker