Concerns are rising that the Federal Housing Administration could run out money if the economy doesn't recover soon, raising the risk the agency would seek a taxpayer bailout for the first time in its 77-year history... as the FHA prepares to release its annual financial report next week, a forthcoming study by Joseph Gyourko, a real estate and finance professor at the University of Pennsylvania's Wharton School, estimates that the FHA faces around $50 billion in losses in the coming years...

Mr. Gyourko says the agency is underestimating by billions of dollars the future losses related to borrowers who used an $8,000 federal tax credit to fund their down payment. The paper also says the FHA is underestimating default risk related to unemployment.

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