Timiraos, N. (2011, Nov 15). Mortgage Insurer's Cash Depleted, Auditor Warns. The Wall Street Journal, A3. print version
"The FHA's cash reserves have fallen so low that there is a 'close to 50%' chance the agency could run out of money and require a taxpayer bailout in the next year, according to the annual independent audit of the FHA's finances...
"...the report assumes that home prices will fall 5.6% this year before hitting bottom and then rising by 1.2% in 2012... However, there is close to a 50% chance that home prices could suffer greater declines, according to the report...
"...One worrying sign is that mortgage delinquencies remain high on FHA loans..."
MAJIA HERE: There can be no recovery without a reduction in outstanding debt and a recovery of income for the bottom half of the US population. Government policy has not addressed either of these mandates.
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