Federal bill to help FHA recoup losses unlikely to pass U.S. Senate

Federal legislation giving the Federal Housing Administration increased power to recoup losses on bad loans is not likely to pass in the Senate by the end of the year because of Republican opposition, according to the Wall Street Journal. The bill would give the FHA the power to force lenders to cover the cost of a defaulting loan, if the agency discovers a serious violation of federal lending standards, raising much needed cash. The bill “is a necessary and responsible step to protect taxpayers given the short amount of time left in the legislative session,” Sen. Tim Johnson, the Senate Banking Committee’s chairman, wrote in a letter last week.

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