The Feb. 21 editorial “Housing solution or problem?” suggested that current policy is responsible for the losses at the Federal Housing Administration. This is not true. The premium increases and changes to risk management we have made over the past three years — efforts noted in the editorial — are responsible for the most profitable, highest-quality loans the agency has made in its 78-year history. This is a stark contrast to loans the agency insured before President Obama took office.
Further, the FHA has never received a bailout. With the recent mortgage foreclosure settlement, the banks did provide hundreds of millions of dollars to the FHA — but that was in redress for fraud and abuses that led to foreclosures. And while the agency has been strained by past loans, this administration has taken action.