Corker Says Negative Economic Value of FHA Demands Fundamental Housing Reform

WASHINGTON, DC – November 16, 2012 – (RealEstateRama) — U.S. Senator Bob Corker, R-Tenn., today made the following statement regarding reports that the Federal Housing Administration has exhausted its reserves and may draw on taxpayer resources.

“The recognition that FHA’s economic value is now negative is a stark reminder that we have put off fundamental housing finance reform for too long. FHA has strayed a long way from its original mission, and it’s time for us to return to fundamentals in housing, recognizing that having the federal government making loans to people who can’t pay them back isn’t good for homeowners, communities, or the country,” Corker said.