P.M. BRIEFING : $4 Billion Needed to Bail Out FHA
Congress probably will need to come up with about $4 billion over the next few years to rescue the fund that has helped millions of Americans buy houses with FHA loans, the government’s chief auditor said today.
Charles A. Bowsher, head of the General Accounting Office, told a Senate panel that the taxpayer money will be needed because the Federal Housing Administration sustained a $4.2-billion loss in 1988 that plunged the FHA insurance fund $2.9 billion into the red. That is the first time the agency has been in the hole.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
