Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Hot on Facebook

Victim of Naked Face-Eater Fights for Life Miami police are quiet on details in the aftermath of gruesome attack »

Borrowers Now Flocking to the Feds to Default on Loans

Same cause of subprime mess blamed for new threats to taxpayers

By Wesley Oliver, Newser Staff

Posted Mar 8, 2009 1:13 PM CDT

(Newser) – History is repeating itself, and taxpayers will be footing the bill for it: Flawed lending practices are enabling borrowers to receive mortgage loans they can’t repay—but this time, Washington’s involved, the Washington Post reports. Many of the loans provided by the Federal... Read full story »

COMMENTS

Read the comment policy

You need to Log in to Newser to comment. Don't have an account yet? Sign up now!

1 comment

A snapshot of the day's best news stories.

View Larger Grid

All Today Yesterday Pick a Date

What's Popular Now on Facebook

Cops Shoot Naked Guy Eating Man's Face on Highway

Victim of Naked Face-Eater Fights for Life

Washington Post (Source Grid »)

Government helping strapped borrowers easily refinance
New York Times

20% of mortgages are in default
Seattle Times

Money • Politics

mortgage • Federal Housing Administration • borrowers • Federal government • taxpayers • predatory lenders

More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

(NEWSER) - The $26 billion mortgage settlement announced yesterday will be a boon for some—but the terms of the deal leave many homeowners out in the cold. Recipients of loans owned by the Federal Housing Administration, for instance, won't directly benefit from the settlement; nor will those with mortgages held by private investors, the New York Times reports. Millions of Fannie Mae and Freddie Mac loans—about half of America's mortgages—aren't part of the plan, either. More»

Taxpayers Footed Fannie, Freddie's $160M Legal Bill

Americans spend $24.2 million to defend executives

(NEWSER) - Taxpayers have spent more than $160 million defending Fannie Mae and Freddie Mac in fraud lawsuits since the government took over the companies in 2008. The closely guarded cost was released last week after Rep. Randy Neugebauer requested the figures last year. Some $132 million of the total went to defend Fannie Mae, mostly over lawsuits and accounting probes that occurred before the subprime crisis; $24.2 million was spent on the defense of three of the mortgage firm’s ex-bosses, the New York Times finds. And the payments continue. More»

Crush of Foreclosures About to Swamp FHA

Taxpayers may foot the bill for defaulting homeowners

(NEWSER) - The Federal Housing Administration is staring down the barrel of a rash of foreclosures that could force it to dip into taxpayer money for the first time. The number of FHA borrowers who have missed at least three payments jumped by a third last year, to 9.1%, which means the agency is almost certain to see a lot of foreclosures soon, the Washington Post explains. More»

FHA Helps High-End Buyers

Raised guarantee limit may be tough to roll back

(NEWSER) - When the government last year doubled the amount the FHA will guarantee on a home loan, to more than $700,000, it moved the agency into uncharted territory: backing loans for the middle-class and the wealthy, too. It also moved the FHA, designed to help low-income buyers who can't raise a hefty deposit, into expensive cities like San Francisco, where there had never been an FHA loan before last year, the New York Times reports. More»

The Next Mortgage Lender Bailout: The FHA

Critics think fallback agency will need a rescue in next couple of years

(NEWSER) - Another mortgage lender specializing in low income borrowers is in trouble: the Federal Housing Administration. The agency which oversees Fannie Mae and Freddie Mac could soon share their fate, as borrowers default on the low-downpayment mortgages it insures, critics told a House subcommittee yesterday. “It appears destined for a taxpayer bailout in the next 24 to 36 months,” said an ex-Fannie Mae executive. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Borrowers Now Flocking to the Feds to Default on Loans

Same cause of subprime mess blamed for new threats to taxpayers

mortgage • Federal Housing Administration • borrowers • Federal government • taxpayers • predatory lenders

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Taxpayers Footed Fannie, Freddie's $160M Legal Bill

Americans spend $24.2 million to defend executives

Crush of Foreclosures About to Swamp FHA

Taxpayers may foot the bill for defaulting homeowners

FHA Helps High-End Buyers

Raised guarantee limit may be tough to roll back

The Next Mortgage Lender Bailout: The FHA

Critics think fallback agency will need a rescue in next couple of years

About Us

Site

Community

Site Maps

Tools

More News

What is Newser?