A Coming Bailout for the Federal Housing Authority?

"The Federal Housing Authority may soon run out of cash to cover its losses, according to a recent Bloomberg View article. Like Fannie Mae and Freddie Mac, the FHA guarantees mortgages. And although Fannie and Freddie backed plenty of subprime mortgages, loans with little or no down payment to low- and middle-income Americans constitute the FHA's entire business. The difference, however, is that the FHA kept a little bit thicker of a cushion for losses, but it is beginning to wear thin as defaults continue to mount."