FHA Gets $1.7 Billion Bailout, No Congressional Approval Required

For the first time in its 79-year history, the Federal Housing Agency (FHA) announced on Friday the need for a $1.7 billion bailout from the Treasury to cover losses on its reverse home mortgage programs.

FHA Commissioner Carole Galante said in a letter to Congress that the FHA will withdraw the money from the Treasury by Monday when the fiscal year ends. Galante does not need congressional approval to tap the funds.

“In the next few months, we expect updated data and economic forecasts to reflect what we already know to be true–the health of the fund has improved significantly,” wrote Galante.

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