Beware of Housing's Next Sinkhole

The answer is difficult to pinpoint, but there are some striking examples. For instance, Congress learned of one possibility for the Federal Housing Administration, which insures about a third of U.S. mortgages. A 2012 audit showed that the FHA could lose $65 billion in a worst-case economic scenario. Beyond that:

The Federal Housing Administration may have tried to hide the magnitude of losses it could face under the most severe economic shock, according to a congressional committee.

The House Committee on Oversight and Government Reform found the audit excluded results that showed the FHA’s traditional mortgage program would be $115 billion in the red under the worst economic assumptions. - Reuters, June 4, 2013

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