U.S. housing agency likely to tap Treasury funds: sources
Every day, Bank of America continues to neglect homes it owns in communities of color and prices decline, allowing investors to snatch up these foreclosures, turning communities into neighborhoods of absentee landlords, said Shanna Smith, president and chief executive of the D.C.-based alliance, a coalition of more than 220 nonprofit and consumer groups. Officials at the bank argue that the alliances report was riddled with inaccuracies and its methodology was flawed. Company spokeswoman Jumana Bauwens said some of the properties that the alliance found fault with in the original complaint were the responsibility of other parties, including the Federal Housing Administration. She said the alliance also did not take into account the condition of the homes when the bank received them.
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Losses on loans made from 2005-2008 as the market was heading south have eaten away at the agency’s cash reserves. While it is reaping profits from more recent mortgages, those profits are not expected to be large enough to maryland property management companies make up the shortfall. Many conservative Republicans have expressed concern that the FHA provided too much credit to unworthy borrowers during the housing crisis, and they cried foul on Wednesday. “The FHA has been going down an irresponsible path for years,” said Senator David Vitter, a Republican member of the Senate Banking Committee.
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