When insurance firms launched social media initiatives, the results were rewarding.
WASHINGTON, Sept. 27 -- Rep. Randy Neugebauer, R-Texas (19th CD), issued the following news release:
Congressman Randy Neugebauer (R-TX), Chairman of the Financial Services Subcommittee on Housing and Insurance, released the following statement in response to a report from the Federal Housing Administration (FHA) that it will require a taxpayer bailout of $1.7 billion--nearly twice as large as originally projected.
"This is incredibly disappointing," Neugebauer said. "From testimony and reports to our committee, we knew the FHA was beyond broke. Now we know it's even beyond its own estimation of bailout broke. I'm shocked to find out now that the FHA will require nearly double the amount they projected. Unfortunately, the Administration is losing credibility on this issue."
Neugebauer is an author of the Protecting American Taxpayers and Homeowners (PATH Act) (http://financialservices.house.gov/news/documentsingle.aspx?DocumentID=342165), which would return FHA to sound financial footing, thereby protecting taxpayers from costly bailouts like this.
"How many more taxpayer bailouts will it take before the Administration admits that the FHA's current business model is no longer solvent?" Neugebauer asked. "This news is a clear sign that we must act quickly to reform the FHA, or taxpayers will be paying the price again and again."
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