WASHINGTON, D.C. – September 26, 2013 – (RealEstateRama) — Financial Services Committee Chairman Jeb Hensarling (R-TX) released the following statement concerning reports that the Federal Housing Administration will require a bailout:
“Hardworking American taxpayers are sick and tired of having to bail out Washington’s failed housing policies, whether it’s the nearly $200 billion bailout of Fannie Mae and Freddie Mac or a bailout of the FHA. Reports that the FHA will require its own billion dollar bailout reinforce the need for the PATH Act, our proposal to create a sustainable housing finance system. The PATH Act not only ends the bailout of Fannie and Freddie, it includes reforms that will help ensure the FHA is solvent. Over the years, the FHA has strayed far from its original mission. It has become the nation’s largest subprime lender. It’s time to return the FHA to its traditional mission of helping first-time homebuyers and those with low and moderate incomes, and that’s exactly what the PATH Act does.”
The PATH (Protecting American Taxpayers and Homeowners) Act was approved by the Financial Services Committee in July.