FHA Might Avoid Taxpayer Subsidy This Year, Galante Says
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The head of the U.S. Federal Housing Administration downplayed a coming budget estimate that is expected to show the agency will need taxpayer aid for the first time since it was founded in the 1930s.
FHA could avoid taking Treasury aid even if the budget President Barack Obama releases next month shows it has a shortfall, FHA Commissioner Carol Galante said at a hearing of the House Financial Services Committee today. The committee’s chairman, Texas Republican Jeb Hensarling, questioned Galante’s numbers, and said the agency is “flat broke.”