The Real Deal Miami

Will FHA require a bailout?

October 12, 2009 11:46AM

While Federal Housing Administration officials insist that the agency is not going to need a bailout, some say that the FHA is overextending
itself,
insuring too many mortgages and taking on too great a financial risk.
Business Insider Managing Editor John Carney sat down with CNBC’s the Kudlow
Report to discuss the FHA’s financial future. Carney argued that it’s too early for the mortgage insurer to know whether it will need a bailout, as the
residential market remains tenuous. “They really can have no idea what
kind of risk they’re taking on right now,” Carney said of the
organization.