Though its capital position improved slightly over last month, the FHA is still firmly in the red, with a current net worth of –$13.45 billion. Particularly alarming is the growth of the Ginnie/USDA division, which has a higher default rate than the FHA.

At this AEI event, Wharton professor Joseph Gyourko discusses the implications of his research on the Federal Housing Administration. Edward Pinto, AEI scholar and housing finance expert, will respond.

The Federal Housing Administration is supposed to support low-income housing without costing taxpayers a dime. Today, the FHA is subsidizing middle and upper-middle income homes - and setting itself up for a huge taxpayer bailout. 

The alarm bells are now ringing for the Federal Housing Administration, with delinquencies increasing.  The immediate and pressing issue is the safety and soundness of FHA today and the risk it poses to the taxpayer.  

The Federal Housing Administration (FHA) uses lax accounting standards that obscure the fact that it is deeply insolvent, with a looming shortfall of tens of billions of dollars that American taxpayers will have to make up.

American Enterprise Institute (AEI) housing expert Edward Pinto assess the key facts to explain the Federal Housing Administration’s (FHA) deteriorating situation.

The federal government has taken over large swaths of consumer lending, most notably the $10 trillion home mortgage and $1 trillion student lending markets. The government's share of new loans for each now approaches 100%.Government monopolies in financial services pose risks to taxpayers as well as borrowers

Three years into the nationalization of housing finance by government-sponsored entities Fannie Mae, Freddie Mac and the Federal Housing Authority, it is time to start reducing their footprints.