The American Enterprise Institute (AEI), based in Washington, D.C., has introduced FHA Watch, a new monthly online publication that will focus on the Federal Housing Administration (FHA) mortgage guarantee program and the risks that it the agency may create for taxpayers.
Each month, FHA Watch will spotlight the agencys financial condition and delinquency levels while calling attention to the impact of unsustainable lending practices on families and neighborhoods. The publication will include a ‘Denial Dial" that is designed to provide "a quick visual of the FHA's capital position,’ according to the AEI.
‘The FHA continues to expand and crowd out the private sector,’ says the AEI. ‘It is guaranteeing more high-risk loans than low-risk ones, has close to one million mortgages in its foreclosure pipeline, and is permitted to project its financial health using accounting rules based on rosy projections extending decades into the future, all the while ignoring that it is already insolvent and needs a bailout to the tune of tens of billions of dollars by any reasonable accounting standard.’