FHA caught trying to cover-up an audit showing potential for huge losses

Speaking of the most transparent administration in the history of the universe, have you heard the one about how the FHA deep-sixed a report showing in a worst-case scenario that it could lose $115 billion? Perhaps because 40 precent of FHA-backed home loans are subprime?

Obama on Friday (AP photo)

FHA emails handed over to the House Oversight and Government Reform Committee reveal an FHA official told an independent auditor: “We just do not want that analysis to be in the actuarial review report,” according to Investor’s Business Daily editorial in the Monday edition of the paper which was delivered on Saturday.

They continued: “In congressional hearings, it is quite possible that we will be required to present this information on-the-record, but that will be well after the actuarial review is released and the initial media coverage takes place.”

It was a political cover-up pure and simple.

IBD quoted Edward Pinto, a former chief Fannie Mae credit officer, as saying, “Any publicly traded private company engaging in practices similar to what FHA is alleged to have done, would be hearing from the SEC and be on the wrong side of a flurry of class-action lawsuits.”

But it is just business as usual in the Obama administration.

5 comments on “FHA caught trying to cover-up an audit showing potential for huge losses

  1. Steve says:

    The house of cards shows some cracks.

  2. Bruce Feher says:

    We the PEOPLE are being brought down by professional politicians & it should be the other way around!

  3. Vernon Clayson says:

    Like waves to the shore come revelations of financial miscalculations and breakdowns by the Obama Administration and it’s helpmates in The Congress. Don’t ask who’s minding the store, that would be viewed as criticism and these geniuses would appoint a committee to investigate criticism. “Gentlemen and gentle ladies, we are gathered here at great expense of time and money to mitigate and mollify situations, conditions, and specifically criticism that we (kind of) brought upon ourselves. We should not point fingers lest we bring attention to the laws we have passed in haste, usually with elections approaching, who among us would have believed that money would ever be a problem and that these departments would not only stretch our feel good legislation to the limit but would add harsher rules and regulations to overcome any shortsightedness they believe we overlooked.” And none of the chief instigators of these abysmal failures will be on the committee nor will they be specifically mentioned.

  4. Joe says:

    Obama transparency is analogous to peering through pig iron. How far you can trust the current USG is — how far you can shot-put an anvil.

  5. Rincon says:

    There was no good reason to cover anything up. The Economist published a story in 2012 which said that Tarp had turned a profit, but that Fannie and Freddie are likely to lose billions. According to the article, the public information was abundant. Nevertheless, the “most transparent administration in history” is an empty phrase with no basis in reality. Democrats are just as sneaky as Republicans any day.

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