REP. CAMPBELL: FHA Is Crowding Out Private-Sector Lenders
February 19, 2013
Washington, DC: Feb. 13 - In a House Financial Services Committee hearing on the Federal Housing Administration's (FHA) fiscal health and proper role in the mortgage insurance market, Congressman John Campbell (CA-45) questions FHA Commissioner Carol Galante on her testimony.
Campbell stresses the need for the FHA to protect taxpayer money and take immediate steps to both limit taxpayer exposure and return the FHA to its historical role.
Campbell points out to Commissioner Galante that the FHA has become the preferred lender for high-priced mortgages and has almost completely crowded out private-sector insurance. He asks Galante to explain how continuing to operate outside of the restrictions and rules which currently regulate private lenders will help to shrink FHA's market share of mortgage loans and accomplish the goal of returning the public agency to its original mission.