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Nothing to See Here, Folks. Just Keep Moving.

9:48 AM, Sep 28, 2013 • By GEOFFREY NORMAN
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The Federal Housing Authority is running a little short so the Treasury is advancing a small loan – not even $2 billion – to replenish an insurance fund.  This is necessary, as Clea Benson of Bloomberg reports:

… after losses on defaulted mortgages depleted reserves.

But no big deal, nothing to be alarmed about.  Be assured since:

 FHA Commissioner Carol Galante said in a letter sent to Congress today [that] “This required mandatory appropriation is an accounting transfer and does not reflect an up-to-date view” of the insurance fund’s “performance, its long-term fiscal health or its current cash position. In the next few months we expect updated data and economic forecasts to reflect what we already know to be true -- the health of the Fund has improved significantly.”

Yes.  And we hear that Fannie Mae and Freddie Mac are doing just fine, too.

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