Earlier today a former Fannie Mae exec and the current head of the FHA gave conflicting testimonies to Congress about the health of the mortgage insurer—particularly about whether or not it’s going to require a taxpayer bailout in the next couple of years.
The Fannie Mae executive, Edward Pinto, told a House subcommittee that “it appears destined for a taxpayer bailout in the next 24 to 36 months” because further losses will wipe out its $30+ billion in cash reserves. The current FHA head, David H. Stevens, said there’s no way that will happen. Well, “absent any catastrophic home price decline.”
“Concerns Grow About Another Another Mortgage Giant” [New York Times]