Remember When I Said "First Comes the Denial"?

Here, when I noted that the FHA was flat out denying that increased write-downs on loans would require a bailout?

My response was:

Next should come a statement of health, then a statement of robust health (or some synonym), and then comes the bailout.

Well, here we are, and the FHA is admitting that it will fall below the cash reserves required by legislation, but they are denying that it will require that they increase the fees that they charge on the loans, or that they get a bailout.

Instead they are planning to announce, "Several measures that should help the reserves rebound quickly."

Yeah....Right, like that will work, though their decision to require future property valuations conform with the Home Valuation Code of Conduct (HVCC), will go a long way toward fixing what continues to be a broken system where realtors whipsaw the appraisers, as the FHA is pretty close to the only game in town right now.

H/t Calculated Risk.