Statement of CRL President Mike Calhoun on today’s report by HUD on the FHA’s financial status
WASHINGTON, D.C. – November 19, 2012 – (RealEstateRama) — FHA has played a critical role during the housing crisis and the economic downturn. It provided credit to families who otherwise would not have been able to buy homes. This has helped new home owners, but also helped stabilize neighborhoods and communities and boost the economic recovery overall. It is essential that FHA continue to fulfill this role, especially as the recovery continues.
It is also essential that FHA operate on a financially sound basis. FHA has already instituted changes so that its current and more recent loans are projected to generate a profit. Those safeguards, along with the additional changes FHA announced today, should produce the additional revenue that will enable FHA to operate without a subsidy from taxpayers. Further restrictions, however, would undercut the ability of FHA to fulfill its mission.
For more information: Kathleen Day at (202) 349-1871 or ; or Ginna Green at (510) 379-5513 or .
About the Center for Responsible Lending
The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation’s largest community development financial institutions.