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Bachus: Administration Must Take Steps To Protect Taxpayers, Strengthen FHA


WASHINGTON, Nov 12 -

- Congressman Spencer Bachus, the top Republican on the Financial Services Committee, made the following statement today regarding the report that FHA's capital reserve ratio fell to 0.53 percent:

"Today's report is troubling and shows just how fragile the financial position of the FHA is. As the FHA's share of the mortgage market has grown over the past two years, the Administration has not taken the steps necessary to ensure the agency has the tools to detect fraud, police mortgage originators of FHA insured loans and conduct proper oversight of its loan portfolio.

"The Administration must take immediate action to shore up and strengthen the FHA to ensure it does not expose taxpayers to yet another bailout."

NOTE: On November 2nd, Ranking Member Bachus and Oversight and Government Reform Ranking Member Darrell Issa sent this letter to HUD requesting specific information on the financial health of the FHA.