Randy Neugebauer
Federal Housing Administration needs $1.7-billion bailout
Federal Housing Administration needs $1.7-billion bailout

WASHINGTON -- The Federal Housing Administration, whose role in the real estate market expanded dramatically in recent years, on Friday said it would need approximately $1.7 billion to stabilize its long-term finances. It marks the first time the 79-year-old agency will require a taxpayer bailout, which it has the authorization to receive without congressional approval. The FHA, which insures more than $1 trillion in mortgages, is funded by premiums charged to homeowners. But the actions it took to stabilize the housing market after the subprime housing bubble burst left it backing billions of dollars in bad loans. Quiz: How much do you know about mortgages? The agency has been...