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Lawmakers Press Top HUD Official on Agency's Fiscal Challenges

Washington, DC
Thursday, December 6, 2012

Housing Secretary Shaun Donovan Thursday said he could not guarantee that the Federal Housing Administration would be able to avoid using taxpayer dollars next year to shore up its home mortgage fund, but he predicted that recent efforts have “significantly decreased” the chances of that happening.

Testifying before the Senate Banking Committee, Secretary Donovan voiced support for raising credit standards and limiting the size of mortgages eligible for FHA financing. The hearing comes after a government report projecting a $16 billion deficit in the FHA Mutual Mortgage Insurance fund.

The Senators highlighted the budget shortfall at the FHA, saying it was a long time coming.

The Secretary testified Wednesday on HUD's efforts in the aftermath of Hurricane Sandy. He called on lawmakers to invest on mitigation before storms hit.

Updated: Thursday, December 6, 2012 at 1:41pm (ET)

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