FHA to get $1.7 billion in its first taxpayer-funded bailout

The Federal Housing Administration needs the bailout money to stabilize its long-term finances and cover potential losses on mortgages it insured from 2007-09.WASHINGTON — The Federal Housing Administration dramatically expanded its role after the subprime market collapsed, but at the expense of its own finances. Now, the government agency will get a first-ever bailout of $1.7 billion.