Hensarling: Obama ‘Parting Gift’ Puts Taxpayers at Risk of Another FHA Bailout

WASHINGTON, D.C. – (RealEstateRama) — House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement regarding HUD Secretary Julian Castro’s announcement to lower Federal Housing Administration (FHA) mortgage insurance premiums:

“It seems the Obama administration’s parting gift to hardworking taxpayers is to put them at greater risk of footing the bill for yet another bailout. Just three years ago the taxpayers had to spend $1.7 billion to bail out the FHA. Lowering premiums to below market rates now only puts the FHA in a more precarious financial condition. Playing politics with the FHA through cynical, surprise 11th hour rule changes is irresponsible and endangers the integrity and success of the FHA. To be successful, the FHA must be fiscally sound, with a clearly defined mission, to ensure homeownership opportunities for creditworthy first-time homebuyers and low-income families. Lowering FHA premiums now is counterproductive to achieving these goals and puts the U.S. taxpayer at greater risk.”