The FHA is Broke, but Apparently No One is AccountablePosted by on October 29, 2013
Today, the House Financial Services Committee held a hearing on the Federal Housing Administration’s (FHA) first-ever taxpayer-funded bailout — approximately $1.7 billion.
Despite long-standing concerns about its solvency, the FHA has not taken the necessary steps to mitigate its losses. FHA currently has several means at its disposal to minimize losses to its insurance fund, yet the FHA has not fully utilized these tools. As a result, American taxpayers are now on the hook for a $1.7 billion bailout.
In light of FHA’s fiscal mismanagement and first-ever taxpayer-funded bailout, Committee Chairman Jeb Hensarling (R-TX) asked FHA Commissioner Carol Galante whether anyone at the agency she heads has been held accountable.
As seen in the video below, unfortunately, Commissioner Galante could not tell Chairman Hensarling who has been held accountable. In fact, she had no answer at all.