SANTELLI: Get Ready For A Massive Bailout Of The FHA!

Suck it, taxpayers.

Santelli last week on another gargantuan taxpayer bailout for housing.

Details from Diana Olick at CNBC...

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Wall Street Journal -- The Federal Housing Administration is expected to report this week that it could exhaust its reserves because of rising mortgage delinquencies, according to people familiar with the matter.  That could result in the agency needing to draw on taxpayer funding for the first time in its 78-year history.

The New Deal-era FHA, which doesn't actually make loans but instead insures lenders against losses, has played a critical role helping the housing market by backing mortgages of borrowers who make down payments of as little as 3.5%—loans that most private lenders won't originate without a government guarantee.  The FHA accounted for one third of loans used to purchase homes last year among owner occupants.

Though the agency guarantees fewer mortgages than either Fannie or Freddie, it now has more seriously delinquent loans than either of the mortgage-finance giants. Overall, the FHA insured nearly 739,000 loans that were 90 days or more past due or in foreclosure at the end of September, an increase of more than 100,000 loans from a year ago. That represents about 9.6% of its $1.08 trillion in mortgages guaranteed.

Continue reading at the WSJ...

Comments

[DailyBail]

The Federal Housing Administration said mounting losses from defaults on loans it backed during the housing bubble left its insurance fund with a $16.3 billion deficit for the fiscal year ended Sept. 30.

http://www.bloomberg.com/news/2012-11-16/fha-sets-stage-for-taxpayer-subsidy-with-2012-deficit.html

So $16 billion this Q.

[DailyBail]

A good read on the FHA and Geithner

http://brucekrasting.com/geithner-to-bailout-fha/

[JosephConrad]

If Americans allow their BOUGHT CONGRESS & BOUGHT PRESIDENT to do a $15-$20 TRILLION TAXPAYER BAILOUT OF THE FHA, hen they ALL DESERVE TO GO TO FEMA-RUN CAMPS! Geithner, Paulson, Greenspan, Bernanke & Rubin are the THUGS trying to DRIVE THIS DEAL HOME. Time for a few GREEK & SPANISH STYLE 'Austerity Marches' ALL ACROSS AMERICA. Round up the bankers and let THEM BAIL OUT TH FHA! They and their Wall Street MINIONS ROBBED IT ANYWAY.
Once again, IT'S TIME FOR STUPID AMERICANS TO PLAY 'Connect the Dots'- or LOSE YOUR DEMOCRACY LIKE GREECE!

[Vern McKinley]

At times in this, he seems to confuse/conflate FHA and Fannie/Freddie (conservatorships).

[LadyLiberty]

Vern I think he understated the size of the problem

Obama's Budget Has One Small, Missing Piece.... For $6.3 Trillion Dollars

http://www.zerohedge.com/article/obamas-budget-has-one-small-missing-piece-63-trillion-dollars

Corporate Crime, Russia, Peter Orszag and Getting Away with Murder

http://corporatecrimereporter.com/morgenson07282011.htm

GSEs Remain Backdoor Bailouts for Banks

http://www.ritholtz.com/blog/2012/09/gses-remain-backdoor-bailouts-for-banks/

Unlimited credit for GSEs seen as backdoor bailout

http://www.reuters.com/article/2010/01/05/us-usa-housing-bailout-idUSTRE6044YU20100105

Is Fannie bailing out the banks?

http://finance.fortune.cnn.com/2011/01/03/is-fannie-bailing-out-the-banks/

This really is relevant even now you can bet in Lloyd's talks with O today Blankfein's a life long democrat and still supported him this time around

http://www.noquarterusa.net/blog/4939/baracks-wall-street-problem-is-now-americas/

Goldman CEO Blankfein Said to Meet With Obama

http://www.bloomberg.com/news/2012-11-27/goldman-ceo-blankfein-said-to-meet-with-obama-tomorrow.html

Five Senior Goldman Sachs Execs Gave $130K To 'Obama Victory Fund' WHILE Eric Holder Was Deciding Whether To File Criminal Charges

http://dailybail.com/home/convicted-bush-1300-clinton-1000-obama-00.html

Fiscal Cliff Primer: Should Congress Take Social Security Advice From Bailed-Out Goldman Sachs CEO Lloyd Blankfein?

http://www.huffingtonpost.com/2012/11/20/fiscal-cliff-lloyd-blankfein-social-security_n_2166099.html

JPMorgan Employees Join Goldman Sachs Among Top Obama Donors

http://www.bloomberg.com/news/2012-03-20/jpmorgan-employees-join-goldman-sachs-among-top-obama-donors.html

[Pvt.Profit SclzCost]

That's banks lending to the govt but the govt eating the risk.

That's like a few health insurers owing health care and
saying we don't want to cover people when they
get sick so make Medicare simply be national health
insurance for them only, screw them when us
plutocrats take too much, and create high risk
exchanges so we can carve out the rougher risk
for the public to take a little more of.

Then establish an intensely privileged monopoly
for everyone else.