The Federal Housing Administration (FHA) is said to report later this week that it has exhausted its reserves and might have to resort to taxpayer funds for the first time in 78 years, according to The Wall Street Journal's Nick Timiraos.
The FHA insures lenders against losses but is said to have been hit by rising mortgage delinquencies.
The WSJ reports that the FHA guarantees fewer mortgages than Fannie Mae or Freddie Mac but now has "more seriously delinquent loans" than both.