The Nation - News from Aug. 23, 1988

The Department of Housing and Urban Development said the demands of a homeless assistance group to stop the sales of foreclosed single-family dwellings would bankrupt a Federal Housing Administration mortgage insurance fund by the end of 1990. The fund, sustained by the collection of mortgage insurance premiums from home buyers who use FHA mortgage insurance, has helped millions of first-time, low- and moderate-income home buyers since its creation in the 1930s, HUD said. HUD has canceled a sales campaign and auction for foreclosed homes because of the threat of a lawsuit by the National Housing Law Project, which claims HUD is violating a law passed last year that requires government agencies to consider needs of the homeless before selling foreclosed properties.