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AmazonTania
09-27-2013, 04:32 PM
My what a difference 5 years make. After all the fan fare about how the administration 'rescued' the mortgage market, the supposed housing recovery and 3 Trillion of liquidity provided by the Federal Reserve, it was assured the worse was over. Right? Well, today the FHA just announced that it needs a Government Bailout for the first time in it's 79 year history. It's really not all that surprising, being that the FHA failed it's Federal Reserve stress test a few months ago. (http://online.wsj.com/article/SB10001424127887324423904578525550468124078.html) The agency was to exceed it's reserves by 13.5 billion in over 30 years.


WASHINGTON (AP) A federal housing agency said Friday it needs a $1.7 billion bailout from the Treasury to cover projected losses in its reverse mortgage programs which allow seniors to borrow against their homes for everyday living expenses.

Federal Housing Administration Commissioner Carole Galante told Congress in a letter that her agency will withdraw the money from the Treasury before the fiscal year ends Monday. Congressional approval is not required. The cash infusion is the first in the agency's 79-year history.
The agency, which insures 40 million home mortgages, is struggling with $5 billion in losses on its reverse mortgage program.
Reverse mortgage borrowers, who must be 62 or older, can take lump-sum or monthly payments. They still must pay property taxes and insurance. Sale proceeds from a home go to the lender when the borrower dies or moves out.
The FHA suffered big losses when many borrowers took large payments up-front and later ran into financial problems, often due to falling home values during the financial crisis.
The agency has sufficient cash to pay insurance claims against mortgage defaults, Galante said, citing more than $30 billion in cash and investments on hand.

http://bigstory.ap.org/article/fha-draw-17b-treasury-cover-losses

zelmo1234
09-27-2013, 05:46 PM
Yep! no surprise here at all. What are your thoughts on Fannie and Freddie? Are they next?

Ethereal
09-27-2013, 07:36 PM
Just a few billion more moving around in Washington DC's multi-trillion dollar slush fund.

Why D.C. Is the Richest Region in the Country (http://reason.com/archives/2013/03/27/imperial-washington)One result is that, today, for the first time, most of America's richest counties are in the Washington area. Of the richest 1 percent of counties in the U.S., 43 percent surround the nation’s capital city.

...average total compensation for a federal employee is now about $120,000, and the gap between government pay and private pay has been growing.

Codename Section
09-27-2013, 07:38 PM
Just a few billion more moving around in Washington DC's multi-trillion dollar slush fund.

Why D.C. Is the Richest Region in the Country (http://reason.com/archives/2013/03/27/imperial-washington)

One result is that, today, for the first time, most of America's richest counties are in the Washington area. Of the richest 1 percent of counties in the U.S., 43 percent surround the nation’s capital city.

...average total compensation for a federal employee is now about $120,000, and the gap between government pay and private pay has been growing.





Devil dog, don't hate. I live there. :)

jillian
09-27-2013, 07:41 PM
Just a few billion more moving around in Washington DC's multi-trillion dollar slush fund.

Why D.C. Is the Richest Region in the Country (http://reason.com/archives/2013/03/27/imperial-washington)

One result is that, today, for the first time, most of America's richest counties are in the Washington area. Of the richest 1 percent of counties in the U.S., 43 percent surround the nation’s capital city.

...average total compensation for a federal employee is now about $120,000, and the gap between government pay and private pay has been growing.




you know 120,000 isn't a lot for them compared to the private sector, right? it doesn't even put them into the top 1%

darryl issa is the wealthiest member of congress with a net worth of 355 million dollars

http://losangeles.cbslocal.com/2013/08/20/house-watchdog-issa-tops-50-wealthiest-in-congress/

remember that when you ask why he behaves as he does...and remember that congress never cuts its own pay when it talks about "cutting the deficit"...no matter how many days off they take.

just saying.

Ethereal
09-27-2013, 07:49 PM
you know 120,000 isn't a lot for them compared to the private sector, right? it doesn't even put them into the top 1%

The single mother who works at Walmart is in the "private sector", so how are you measuring its income?


darryl issa is the wealthiest member of congress with a net worth of 355 million dollars

http://losangeles.cbslocal.com/2013/08/20/house-watchdog-issa-tops-50-wealthiest-in-congress/

remember that when you ask why he behaves as he does...and remember that congress never cuts its own pay when it talks about "cutting the deficit"...no matter how many days off they take.

just saying.

Just to clue you in, and I'll only say this once, I am NOT a Republican, so attacking them will not upset me in the least, nor will it undermine my political philosophy.

jillian
09-27-2013, 08:11 PM
The single mother who works at Walmart is in the "private sector", so how are you measuring its income?



Just to clue you in, and I'll only say this once, I am NOT a Republican, so attacking them will not upset me in the least, nor will it undermine my political philosophy.

and where in my post did i mention the word "republican" or any party. i mentioned a specific (grandstanding) congressman...

and talked about how the entire congress doesn't cut its own pay.

soooo while i appreciate that you're not a republican.. i'm wondering why you felt i was attacking any group in particular.

Ethereal
09-28-2013, 10:46 AM
and where in my post did i mention the word "republican" or any party. i mentioned a specific (grandstanding) congressman...

And why did you mention him?


and talked about how the entire congress doesn't cut its own pay.

Yes, and?


soooo while i appreciate that you're not a republican.. i'm wondering why you felt i was attacking any group in particular.

Because you're obviously an Obama supporter.

Chris
09-28-2013, 01:04 PM
Well, jillian has managed to side track another thread.

Chris
09-28-2013, 01:06 PM
My what a difference 5 years make. After all the fan fare about how the administration 'rescued' the mortgage market, the supposed housing recovery and 3 Trillion of liquidity provided by the Federal Reserve, it was assured the worse was over. Right? Well, today the FHA just announced that it needs a Government Bailout for the first time in it's 79 year history. It's really not all that surprising, being that the FHA failed it's Federal Reserve stress test a few months ago. (http://online.wsj.com/article/SB10001424127887324423904578525550468124078.html) The agency was to exceed it's reserves by 13.5 billion in over 30 years.



This, while I get it's a continuation of the housing bubble failure which was supposed to have been fixed, seems to be a case now of government being to big to fail.


I find it difficult to believe the FHA does not have to ask Congress for approval but can simply take the money and bail itself out.

abbyhill
11-22-2013, 12:20 AM
Reverse mortgages are a bit of a niche financial product, as they are only accessible to seniors. The loans can provide some funding for retirement, but the CFPB is looking into the goods to see if any additional legislation could be warranted.

lynn
11-22-2013, 09:21 AM
Isn't a reverse mortgage for seniors is where their house now belongs to the mortgage company when they die?

Mainecoons
11-22-2013, 09:24 AM
Also be aware that much of the housing recovery is as phony as the rest of the Obama recovery. Many of the sales are cash sales to speculators who are hoping the bubble will return and are trying to rent the houses out in the mean time. My brother lives in Phoenix and he says rental houses are cheaper than apartments and available by the thousands.

Thanks to the Federal government and its destructive economic policies, few of the young people who would normally be buying homes are doing so. One of the fastest rising housing cohorts is young people continuing to live at home with parents. Between have fat college debts and seeing little out there but Obama McJobs, these people can't buy homes and likely won't do so for decades, if ever.

Peter1469
11-22-2013, 09:40 AM
Isn't a reverse mortgage for seniors is where their house now belongs to the mortgage company when they die?

I think that heirs can still take title (by refinancing or paying off the loan). But if seniors don't have any heirs (that they care about), they might as well live large on the extra cash.