Last year The Federal Housing Administration, the largest insurer of low down payment mortgages, required a $1.7 billion infusion from the Treasury Department to build up its depleted capital reserves to the level required by Congress — 2% of its $1.17 trillion in outstanding loans. It was the first time in the FHA’s 80-year history that it required such a bailout. FHA loans along with a ton of cash buyers was the only buyers in the Summerlin Nevada real estate market during the downturn.
FHA’s massive loan portfolio took a beating during the housing bust that also effected Summerlin real estate. It was nearly the only agency to back loans for those who had little money saved for a down payment in the Las Vegas, Nevada area. On Tuesday, the U.S. Department of Housing and Urban Development projected that the FHA’s capital reserve fund will end the year with a positive balance of $7.8 billion
Read the CNN Money article FHA says it won’t need another bailout