Hensarling Says FHA’s ‘Broke’ and Schedules Hearings

The House Financial Services Committee will hold two hearings on the financial condition of the Federal Housing Administration single-family program, according to the new committee chairman Jeb Hensarling, R-Texas.

“The FHA is broke—bailout broke,” Hensarling said. “The FHA’s dire financial condition and dominance of our housing finance system are a clear and present danger to every taxpayer who is now at great risk of having to fund yet another Washington bailout. Without serious reform, FHA may become the next Fannie Mae and Freddie Mac,” he said.

Housing finance analysts and experts will testify on Feb. 6. On Feb. 13, FHA commissioner Carol Galante will testify before the committee.