fha

Continued trouble in the housing market has further eroded the Federal Housing Administration's reserves, leaving it with a very thin cushion to protect it against future financial losses.

Coming soon to FHA-backed loans: Higher FICO scores and more cash at closing. The changes are needed to help keep the agency afloat.

When the government took over Fannie Mae and Freddie Mac, it also authorized the FHA to put up $300 million to help homeowners facing foreclosure get new loans.

The Hope for Housing program is the result.

The House is debating a $300 billion home-loan rescue package that would dramatically increase the role of the Federal Housing Administration to clean up the subprime mess.

Nancy Marshall Genzer reports on whether the FHA is up to the job.

Commentator and economist Glenn Hubbard says that to fix the housing crisis we must give the Federal Housing Administration more authority.

He believes it should offer new loans to subprime mortgage holders to enable them to refinance.