You can now read 10 articles a month for free. Read as much as you want anywhere and anytime for just 99¢.

FHA needs $1b boost, chief says

WASHINGTON — The head of the Federal Housing Administration says her agency may need as much as a $1 billion rescue package to bolster its reserves despite efforts to shore up its finances with higher mortgage insurance premiums.

Commissioner Carol Galante told a Senate committee that her agency, which insures some 40 million home mortgages, is struggling with more than $5 billion in losses on reverse mortgages this year. Galante says the FHA played a crucial role in bringing the housing market back from the brink of collapse, but at a heavy financial price to itself.

Continue reading below

The FHA is required by law to maintain reserves equal to 2 percent of the total amount of home mortgages it insures.

Loading comments...

You have reached the limit of 10 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week