This story appeared in Bank Digest.
Following a hearing (webcast) on the state of the housing market conducted by the Senate Banking Committee, Sen. David Vitter, R-La., called for reform of the Federal Housing Adminstration to make sure the agency can remain solvent without a federal bailout. Vitter stated that the FHA has been violating the congressionally mandated ratio of capital it must keep in its mortgage insurance fund since 2009. “The FHA has a responsibility to manage their funds responsibly and keep their books in order,” Vitter said. He added that he does not “believe that giving even more power to the FHA is going to fix what's broken in the housing market.”