Reuters is reporting that the Federal Housing Administration will need emergency help -- in the form of a cash bailout -- from the U.S. Treasury Department, for the first time in its history.
According to Reuters:
The agency, which offers private mortgage lenders guarantees against homeowner default, has nearly exhausted its reserves for the mortgages it backs, making it necessary for the government agency to turn to the Treasury Department for a cash injection.
The FHA has never needed to tap the Treasury before because it has been able to take other actions, including raising insurance premiums, to stay solvent.
The White House projected in April that the FHA would face a shortfall of $943 million for the fiscal year that ends on Monday, but the agency said it would wait until the end of the budget year to make a final decision on whether to draw Treasury aid.
To better understand how the FHA works and why it may need a bailout, check out Paddy Hirsch's Whiteboard on the topic:
The FBI released its preliminary findings in its investigation of the Navy Yard shootings that left 13 people dead including the shooter. Aaron Alexis said he committed the massacre because he was being attacked by electromagnetic waves.
Hasan Rouhani spoke of moderation and said Iran was willing to talk to the West about its nuclear program. The U.S. and its European allies have reacted with cautious optimism, but not everyone is buying the new Iranian leader's charm offensive.
After a dramatic night, senators voted unanimously to move ahead. Democrats control the Senate. They plan to strip a House bill of a provision that defunds Obamcare. The Senate would then send the bill back to the House, setting up another cliff-hanger that could end with a government shutdown.
Nearly half the horn players in an Australian study noticed that they'd lost some of their hearing. Among the younger horn players, hearing tests found that up to one-third of them had noise-related hearing deficits.
Starting next week, federally run exchanges set up under the Affordable Care Act will officially roll out in 36 states. And we now have our first detailed look at the prices.
Dr. Jeffrey Brenner, was named one of the prestigious MacArthur Foundation 'genius grant' winners today. He organized a system in Camden, the Camden Coalition of Healthcare Providers, that tracks down the poorest patients who need care. He chats with Marketplace Morning Report host David Brancaccio about the news and his project.
The U.S. cannot pinpoint just when it will hit its debt limit, and while a giant unexpected expense could cause a problem, it's revenues that make the deadline tough to figure out.