The Wisconsin Housing and Economic Development Authority (WHEDA) has temporarily ceased issuing mortgages for single-family homes due to problems raising sufficient money to lend.
This is the first time in WHEDA's 30-year history that it has suffered liquidity issues to this degree, notes the Milwaukee Journal Sentinel. The agency had recently been forced to raise its interest rates to 7.5% in an effort to increase capital.
Last year, WHEDA issued $522 million in loans.
Source: Milwaukee Journal Sentinel