By
Vicki Needham | The Hill
The nation’s top housing official on Wednesday tried to reassure concerned House Republicans that his latest policy moves will bolster the long-term financial health of the Federal Housing Administration (FHA).
Republicans grilled Housing and Urban Development Department Secretary Julian Castro during a House hearing about his recent decision to lower mortgage insurance premiums despite the FHA falling short of its capital reserve requirement.
House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and several other GOP members of the panel told Castro that the agency is breaking the law and needs to do everything possible to reach its 2 percent requirement.
“The FHA continues to violate federal law by keeping a woefully insufficient capital reserve and right after receiving its first-ever taxpayer bailout,” Hensarling said. “This cannot be allowed to stand.”
