Housing Administration Might Need $943 Million Bailout, White House Says

The cash-strapped Federal Housing Administration will probably require a $943 million taxpayer bailout to cover expected losses on loans it insured as the U.S. housing bubble was deflating, the Obama administration said Wednesday.

It would be the first bailout of the government’s mortgage insurer in its nearly 80-year history.

The White House estimated that the FHA has about $30 billion on hand but said its cash reserves would probably be swamped by souring loans.
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