P.M. BRIEFING : $4 Billion Needed to Bail Out FHA
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From Times wire services
WASHINGTON — Congress probably will need to come up with about $4 billion over the next few years to rescue the fund that has helped millions of Americans buy houses with FHA loans, the government’s chief auditor said today.
Charles A. Bowsher, head of the General Accounting Office, told a Senate panel that the taxpayer money will be needed because the Federal Housing Administration sustained a $4.2-billion loss in 1988 that plunged the FHA insurance fund $2.9 billion into the red. That is the first time the agency has been in the hole.
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