By Evan Mantyk
Epoch Times Staff
01.25.2012

The Federal Housing Administration (FHA) is deeply insolvent and headed toward a financial crash like that of Freddie Mac and Fannie
Mae in 2008, according to analysis from the American Enterprise Institute (AEI) released last week.

“We are watching—in not-so-slow motion—the same gradual descent into insolvency that occurred with Fannie and Freddie a little
more than three years ago,” reads the outlook for FHA authored by Edward Pinto, an executive vice president and chief credit officer
for Fannie Mae until the late 1980s, and Peter J. Wallison, a general counsel of the U.S. Treasury Department during the Reagan
administration.


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