D.A.-elect has full plate as she confronts her next challenge









As a junior at UC Irvine in 1978, Jackie Lacey was featured in a Seventeen magazine article profiling 13 young women. The first in her family to go to college, she had recently switched her career plan from being a grade school teacher to a lawyer.


"I can do more in the legal process to help people," Lacey, then 21, told the magazine. "I've seen so many black people cheated by tradesmen or intimidated by the police because they have no knowledge of their legal rights. I'd like to help change that."


Back then, Lacey said, becoming a prosecutor was the last thing on her agenda. The attorneys the black community looked up to were defense attorneys and civil rights lawyers.





"'Prosecutor, what is that? Is that the person who puts people in jail?' — that's the view I had of the prosecutor's office," she said.


But that view changed. Earlier this month L.A. County voters elected Lacey district attorney, capping a 26-year career in the nation's largest prosecutorial office. She also broke down some barriers, something noticed by many, including hip-hop mogul Sean "Diddy" Combs.


"Congrats to Jackie Lacey who became the first woman and African American to be elected District Attorney of Los Angeles! LETS GO! POWERFUL," Combs tweeted the day after the election.


She drew other celebrity supporters, including former basketball star Magic Johnson and R&B singer Macy Gray, who performed at Lacey's election night party, confiding to the audience that she had been wooed by the candidate's promise to have her over for peach cobbler.


The new D.A.-elect is going to have little time to celebrate her victory or perhaps even bake that cobbler. She's faced with numerous challenges, ranging from prison realignment and court closures to choosing a new leadership team.


The job will also thrust her into the limelight as never before. Despite serving as outgoing Dist. Atty. Steve Cooley's second-in-command, she spent the last decade largely away from the spotlight — until she ran for office. Her opponent, prosecutor Alan Jackson, on the other hand, had gotten media attention for cases like the murder trials of music producer Phil Spector, and regularly appeared on the NBC show "Unsolved Case Squad."


Within the district attorney's office, Lacey has been known for her down-to-earth persona and collaborative leadership style.


"I would say she's probably one of the most approachable managers I've ever worked for," said Joseph Esposito, director of specialized prosecutions, who worked under Lacey when she headed the district attorney's central operations bureau. "… One thing I learned immediately is that it was absolutely OK to express my own opinion, even if it was contrary to hers."


Detractors criticized Lacey as a bureaucrat overly beholden to Cooley. In a television ad, Jackson slammed her for conflicting testimony she had given in two union grievance hearings, saying she was "a political appointee who was dishonest under oath to protect her boss." Lacey maintained that she had merely corrected her previous testimony, and called Jackson naive.


Lacey told the Times in an interview during her campaign, "I don't foam at the mouth, I don't walk around bragging. Running for office is really hard for me because I'm not used to marketing myself. But I am a determined individual. If I set my mind to something, I will work literally day and night until I am sick."


--


Lacey grew up in the Crenshaw district of Los Angeles, raised by blue collar parents — her father worked for the city's lot cleaning division and her mother in a garment factory and later for the school district — who had migrated from the South. Despite beginning from "scratch," as Lacey's mother, Addie Phillips, put it, they saved enough to buy their house for $30,000 and enough to send Lacey to college.


She went on to law school at USC on a scholarship, and upon graduation, joined a small entertainment law firm.


"That sounds sexy," she said. "It was the most boring job you could imagine."


Unable to stomach the succession of monotonous depositions, she jumped to the Santa Monica city attorney's office, where a friend from law school had landed. There she found that she enjoyed criminal law. She also discovered, she said, that "many of the victims are poor people, just like the people I said I wanted to help."


After moving to the district attorney's office, she eventually prosecuted hate crimes, including the case of a black homeless man in Lancaster who was beaten to death by three Nazi Lowriders.


Lacey worked under Cooley in the San Fernando courthouse and was the first person he appointed to management after his election as district attorney in 2000. Cooley appointed her as chief deputy district attorney in March 2011, shortly before announcing his own plans to retire and backing her run to replace him.


As district attorney-elect, Lacey will immediately be confronted by the hot button issue of prison realignment, which shifted responsibility for thousands of prisoners and parolees from the state to counties.


"That's the overall biggest problem everyone has in the criminal justice system," said Laurie Levenson, a former federal prosecutor and Loyola Law School professor. "…If she can just deal with realignment, she will be a huge success."


Lacey acknowledged that realignment has not so far brought the "Armageddon" of spiking crimes rates that some predicted, but still called it a threat to public safety, citing the potential for jail overcrowding and concerns about the system's ability to monitor released prisoners.


Lacey has said she wants to move quickly to expand the county's alternative sentencing programs for veterans, female parolees and people with mental illnesses and substance abuse problems, although she is still working out the mechanics of how to do it. Offering alternative sentencing to more low-level offenders would ensure that the jails have room for more serious criminals and that courts, not sheriff's officials, would decide how long offenders will spend in jail, she said.


At the same time, Lacey supports reclassifying some nonviolent offenders, including high-level drug dealers and some identity theft perpetrators, to make them eligible for state prison time.


She has also promised to expand prosecutions of identity theft and environmental crimes — the office currently has only one investigator dedicated to that role — and has pledged to continue to support the public integrity unit, a pet project of Cooley's. That unit has prosecuted officials in Bell, Vernon and elsewhere on public corruption charges.


Lacey's first move as district attorney, however, will be to appoint people to her leadership team. So far, she has declined to say whom she is considering.


abby.sewell@latimes.com





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Wii U Will Launch With 24 Games This Sunday
















Assassin’s Creed III


A version of the latest chapter in the Assassin’s Creed saga, a week after it was released on other console.


Click here to view this gallery.













[More from Mashable: Xbox Live Celebrates 10 Years of Connecting Gamers]


Nintendo’s newest console is out this Sunday, and there are already people lining up outside retailers to get one.


There are 24 games available for the Wii U at launch. Some are highly anticipated Nintendo staples, like New Super Mario Brothers U, and some are interesting and creative titles from third-party developers, like Scribblenauts Unlimited and ZombiU. Many games already out on other systems are being released for the Wii U as well, including Assassin’s Creed III and NBA 2K13; some of these games even have extra functionality that’s been added to take advantage of the Wii U GamePad.


[More from Mashable: Competitive Gaming Seeing TV-Levels of Viewership in 2012]


If you don’t see a game in the gallery above that you thought was coming to the Wii U, it’s because many announced games will be available in the “launch window”, a broad period from now until March. That’s when games like Pikmin 3 and LEGO City Undercover will come out.


If you haven’t preordered a Wii U from a large retailer, many places will still have them available at launch day. Expect long lines at larger retailers though.


Are you planning on purchasing a Wii U this weekend, and what games do you most want to buy? Let us know in the comments.


This story originally published on Mashable here.


Gaming News Headlines – Yahoo! News



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Lady Gaga tweets some racy images before concert

BUENOS AIRES, Argentina (AP) — Lady Gaga's tweets were getting a lot of attention ahead of her Buenos Aires concert Friday night.

The Grammy-winning entertainer has more than 30 million followers on Twitter and that's where she shared a link this week to a short video showing her doing a striptease and fooling around in a bathtub with two other women.

She told her followers that it's a "surprise for you, almost ready for you to TASTE."

Then, in between concerts in Brazil and Argentina, she posted a picture Thursday on her Twitter page showing her wallowing in her underwear and impossibly high heels on top of the remains of what appears to be a strawberry shortcake.

"The real CAKE isn't HAVING what you want, it's DOING what you want," she tweeted.

Lady Gaga wore decidedly unglamorous baggy jeans and a blouse outside her Buenos Aires hotel Thursday as three burly bodyguards kept her fans at bay. Another pre-concert media event where she was supposed to be given "guest of honor" status by the city government Friday afternoon was cancelled.

After Argentina, she is scheduled to perform in Santiago, Chile; Lima, Peru; and Asuncion, Paraguay, before taking her "Born This Way Ball" tour to Africa, Europe and North America.

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The Neediest Cases: Emerging From a Bleak Life to Become Fabulous Phil





For years, Phillip Johnson was caught in what seemed like an endless trench of bad luck. He was fired from a job, experienced intensifying psychological problems, lost his apartment and spent time in homeless shelters. At one point, he was hospitalized after overdosing on an antipsychotic drug.




“I had a rough road,” he said.


Since his hospital stay two years ago, and despite setbacks, Mr. Johnson, 27, has been getting his life on track. At Brooklyn Community Services, where he goes for daily counseling and therapy, everybody knows him as Fabulous Phil.


“Phillip is a light, the way he evokes happiness in other people,” his former caseworker, Teresa O’Brien, said. “Phillip’s character led directly to his nickname.”


About six months ago, with Ms. O’Brien’s help, Mr. Johnson started an event: Fabulous Phil Friday Dance Party Fridays.


One recent afternoon at the agency, 30 clients and a few counselors were eating cake, drinking soft drinks and juice, and grooving for 45 minutes to Jay-Z and Drake pulsating from a boom box.


Mr. Johnson’s voice rose with excitement when he talked about the party. Clients and counselors, he said, “enjoy themselves.”


“They connect more; they communicate more,” he continued. “Everybody is celebrating and laughing.”


The leadership Mr. Johnson now displays seems to be a far cry from the excruciatingly introverted person he was.


As an only child living with his single mother in public housing in Bedford-Stuyvesant, Brooklyn, he said, he tended to isolate himself. “A lot of kids my age would say, ‘Come outside,’ but I would always stay in my room,” he said. He occupied himself by writing comic books or reading them, his favorites being Batman and Spiderman because, he said, “they were heroes who saved the day.”


After graduating from high school in 2003, he worked odd jobs until 2006, when he took a full-time position at a food court at La Guardia Airport, where he helped to clean up. The steady paycheck allowed him to leave his mother’s apartment and rent a room in Queens.


But the depression and bleak moods that had shadowed him throughout middle and high school asserted themselves.


“My thinking got confused,” he said. “Racing thoughts through my mind. Disorganized thoughts. I had a hard time focusing on one thing.”


In 2008, after two years on the job, Mr. Johnson was fired for loud and inappropriate behavior, and for being “unpredictable,” he said. The boss said he needed counseling. He moved back in with his mother, and in 2009 entered a program at an outpatient addiction treatment service, Bridge Back to Life. It was there, he said, that he received a diagnosis of schizophrenia and help with his depression and marijuana use.


But one evening in May 2010, he had a bout with insomnia.


He realized the antipsychotic medication he had been prescribed, Risperdal, made him feel tired, he said, so he took 12 of the pills, rather than his usual dosage of two pills twice a day. When 12 did not work, he took 6 more.


“The next morning when I woke up, it was hard for me to breathe,” he said.


He called an ambulance, which took to Woodhull Hospital. He was released after about a month.


Not long after, he returned to his mother’s apartment, but by February 2011, they both decided he should leave, and he relocated to a homeless shelter in East New York, where, he said, eight other people were crammed into his cubicle and there were “bedbugs, people lying in your bed, breaking into your locker to steal your stuff.”


In late spring 2011, he found a room for rent in Manhattan, but by Thanksgiving he was hospitalized again. Another stint in a shelter followed in April, when his building was sold.


Finally, in July, Mr. Johnson moved to supported housing on Staten Island, where he lives with a roommate. His monthly $900 Social Security disability check is sent to the residence, which deducts $600 for rent and gives him $175 in spending money; he has breakfast and lunch at the Brooklyn agency. To assist Mr. Johnson with unexpected expenses, a grant of $550 through The New York Times Neediest Cases Fund went to buy him a bed and pay a Medicare prescription plan fee for three months.


“I was so happy I have a bed to sleep on,” he said about the replacement for an air mattress. “When I have a long day, I have a bed to lay in, and I feel good about that.”


Mr. Johnson’s goals include getting his driver’s license — “I already have a learner’s permit,” he said, proudly — finishing his program at the agency, and then entering an apprenticeship program to become a plumber, carpenter or mechanic.


But seeing how his peers have benefited from Fabulous Phil Fridays has made him vow to remain involved with people dealing with mental illnesses or substance abuse.


He was asked at the party: Might he be like the comic-book heroes he loves? A smile spread across his face. He seemed to think so.


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Black Friday: A survival guide



Shopping












The plan | The numbers | The gear | The strategy | The apps | The start






Black Friday, the most buzzed-about shopping day of the year, is starting even earlier this holiday season as retailers try to get a jump on the competition.

The official kickoff to the Christmas shopping rush, the day after Thanksgiving brings out millions of bargain hunters looking to score new tablets, flat-panel TVs, clothes and toys. Last year retailers raked in an estimated $11.4 billion on Black Friday, up 6.6% from 2010.

This year, major retailers including Wal-Mart and Toys R Us are opening their doors as early as 8 p.m. on Thanksgiving Day. That’s too bad for store employees, but good news if you’re a shopaholic who doesn’t mind hitting the shops before the turkey has cooled.

For those of you who are planning to brave the crowds, whether you’re a first-timer or a seasoned veteran, here’s a guide to surviving the Black Friday rush.


-- Andrea Chang



























Photo credit: Francine Orr / Los Angeles Times










Photo credit: Mark Boster / Los Angeles Times










Photo credit: Mark Boster / Los Angeles Times










Photo credit: Brian van der Brug / Los Angeles Times










Photo credit: Seong Joon Cho / Bloomberg










Photo credit: Associated Press






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Obama and Boehner upbeat after 'fiscal cliff' meeting









WASHINGTON — The outline of a compromise over impending tax hikes and spending cuts began to come into focus Friday after President Obama convened top congressional leaders at the White House.


Differences remain, especially as Republicans, led in the House by Speaker John A. Boehner of Ohio, continue to fight to keep tax rates for the wealthiest Americans from rising.


But the contours of a two-stage deal are taking shape as leaders work to avert a year-end fiscal crisis and break the gridlock that has soured voters on Washington. The mood alone, with Obama congratulating Boehner on his birthday Saturday and Republican and Democratic leaders taking turns speaking to signify their unity, signaled a sharp change from past confrontations.





"We have the cornerstones of being able to work something out," said Senate Majority Leader Harry Reid of Nevada, as leaders from both parties emerged from the White House. "This is not something we're going to wait until the last day of December to get done. We have a plan. We're going to move forward on it."


Boehner, who presented his framework for a broad tax-and-spending overhaul to be undertaken in 2013, also sounded an optimistic note.


"To show our seriousness, we've put revenue on the table, as long as it's accompanied by significant spending cuts," Boehner said. "It's going to be incumbent on my colleagues to show the American people we're serious."


The first part of such a deal would be legislation this year that would commit Congress to specific revenue increases, favored by Democrats, and spending cuts, as advocated by Republicans. How those increases and cuts would be achieved would be worked out in the second stage next year by the new Congress.


Not addressed was how to resolve the standoff over this year's expiring tax rates. Resolving the tax breaks for wealthier Americans remains, in many ways, the linchpin to a deal.


Obama and Boehner appeared more comfortable together than a year ago, when they tried — and failed — to reach a $4-trillion deficit-reduction deal that many economists have warned is vital for the nation's long-term fiscal health.


The two leading actors exchanged a light moment as the president wished the speaker, who turns 63 on Saturday, a happy birthday and gave the known Merlot fan an expensive bottle of Italian red wine.


"My hope is this is going to be the beginning of a fruitful process that we're able to come to agreement on that will reduce our deficit in a balanced way, that we will deal with some of these long-term impediments to growth, and we're also going to be focusing on making sure that middle-class families are able to get ahead," Obama said as he opened the meeting in the Roosevelt Room. "We're going to get to work."


Friday's closed-door gathering was the first such sit-down since the election, which emboldened Obama and his allies on Capitol Hill. Americans spoke at the polls, they maintain, preferring the Democratic approach, which asks the wealthiest taxpayers to contribute more revenue while preventing steep spending to domestic cuts.


To rank-and-file Republicans, though, the election results signaled that voters want the GOP House majority to hold a final "line of defense," as Boehner puts it, against what they see as government overreach.


Efforts to raise new tax revenue while cutting spending has eluded the parties in the past, but this year's built-in deadline could give them a boost.


Unless Congress acts, taxes will rise on most Americans, a $2,000 average hit as current rates expire on Dec. 31. Massive federal spending cuts scheduled to begin Jan. 2 would cut across defense and domestic accounts, pulling funds out of the economy. Together, they have been referred to as a "fiscal cliff."


A shift can be heard in the rhetoric, as Republicans now say they are willing to consider increases in tax revenue, and Obama has softened his insistence that top income tax rates, now at 35%, must rise to 39.6%, the rate from the Clinton era.


"We all understand where we are," said Sen. Mitch McConnell of Kentucky, the Republican leader. "We're prepared to put revenue on the table provided we fix the real problem, even though most of my members, I think without exception, believe that we're in the dilemma we're in not because we tax too little but because we spend too much."


During the hourlong session Friday, Boehner presented his proposal to have the parties agree to targets for new tax revenues and spending cuts, which would be bound by statute and enacted in 2013.


Tax revenue could be raised by closing tax loopholes or capping deductions for the wealthiest Americans — couples earning incomes above $250,000, or $200,000 for singles. Such a broad deal would also require Democrats to agree to rein in spending on Medicare, Medicaid and other entitlement programs as Obama has previously proposed.


Both sides agreed to begin working now on the 2013 framework. Nothing will be decided until after the Thanksgiving holiday.


Obama has repeatedly sought to pressure House Republicans to at least extend the expiring tax rates for those who do not earn above $250,000. The Senate has already passed a bill that would do so, preventing a New Year's tax hike on the middle class, while talks continue over tax rates for the wealthy.


House Republicans have refused to budge, and Boehner gave no indication Friday he would allow rates to rise.


lisa.mascaro@latimes.com





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News Summary: UK court overturns Facebook demotion
















PUNISHED: Britain‘s High Court ruled Friday that a man had been unfairly stripped of a management position and demoted for saying in a Facebook post that he was opposed to gay marriage.


COURT RULING: The court said the Trafford Housing Trust breached Adrian Smith‘s contract and a judge added that Smith had not done anything wrong. Smith had written on Facebook that gay weddings in churches would be “an equality too far.”













EVOLVING LAW: In Britain, same-sex couples can form civil partnerships that carry the same legal rights marriages do. The government plans to introduce legislation allowing civil marriages as well.


Social Media News Headlines – Yahoo! News



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Lady Gaga tweets some racy images before concert

BUENOS AIRES, Argentina (AP) — Lady Gaga's tweets were getting a lot of attention ahead of her Buenos Aires concert Friday night.

The Grammy-winning entertainer has more than 30 million followers on Twitter and that's where she shared a link this week to a short video showing her doing a striptease and fooling around in a bathtub with two other women.

She told her followers that it's a "surprise for you, almost ready for you to TASTE."

Then, in between concerts in Brazil and Argentina, she posted a picture Thursday on her Twitter page showing her wallowing in her underwear and impossibly high heels on top of the remains of what appears to be a strawberry shortcake.

"The real CAKE isn't HAVING what you want, it's DOING what you want," she tweeted.

Lady Gaga wore decidedly unglamorous baggy jeans and a blouse outside her Buenos Aires hotel Thursday as three burly bodyguards kept her fans at bay. Another pre-concert media event where she was supposed to be given "guest of honor" status by the city government Friday afternoon was cancelled.

After Argentina, she is scheduled to perform in Santiago, Chile; Lima, Peru; and Asuncion, Paraguay, before taking her "Born This Way Ball" tour to Africa, Europe and North America.

Read More..

N.F.L. Paid Millions Over Brain Injuries, Article Says





Three retired N.F.L. players received at least $2 million in disability payments as a result of brain trauma injuries from their playing days, according to an article by ESPN and the PBS series “Frontline.”




The payments were made in the 1990s and early 2000s by the Bell/Rozelle N.F.L. Player Retirement Plan, a committee comprising representatives of the owners, players and the N.F.L. commissioner.


The N.F.L. is being sued by several thousand retired players who accuse the league of concealing a link between hits to the head and brain injuries. The league denies the accusation and has said it did not mislead its players.


The article, however, cites a letter written in 2000 from the director of the retirement plan who stated that Mike Webster, who retired in 1990, had a disability that was “the result of head injuries he suffered as a football player with the Pittsburgh Steelers and the Kansas City Chiefs.”


Webster died in 2002. The article cites similar payments to Gerry Sullivan, a lineman for the Browns, and a third, unnamed player.


The article provides more details than were known about Webster’s case; his fight for disability benefits was known. The retired players say that “the N.F.L.’s own physician independently examined Webster and concluded that Webster was mentally ‘completely and totally disabled as of the date of his retirement and was certainly disabled when he stopped playing football sometime in 1990.’ ”


However, Greg Aiello, a spokesman for the N.F.L., said that the ESPN report “underscores that we have had a system in place with the union for many years to address player injury claims on a case-by-case basis.” The disability plan, he said, was “collectively bargained with the players.”


“All decisions concerning player injury claims are made by the disability plan’s board, not by the N.F.L. or by the Players Association,” Aiello said.


The board has seven members: three owner representatives, three player representatives and one nonvoting representative of the commissioner.


The disclosures in the article came a day after Commissioner Roger Goodell spoke at the Harvard School of Public Health, where he trumpeted the league’s efforts to increase the safety of its players and proclaimed that “medical decisions override everything else.”


Jeffrey Standen, a law professor at Willamette University in Oregon, said the details about Webster’s disability payments did not amount to a smoking gun. The plan’s determination that Webster sustained head injuries is not the same as the N.F.L. making that decision.


“The problem is the N.F.L. didn’t make the admission; it was the board,” Standen said. “They’re not the same body. As a legal matter, the fact that they paid Webster is not going to matter much in legal terms. But it’s evidence to throw in front of a jury.”


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FHA lacks reserves to cover losses









WASHINGTON — As the housing market recovers, one government agency is still paying the price for helping to stabilize it — and taxpayers could get the bill.


The Federal Housing Administration, whose mortgage insurance business skyrocketed during the Great Recession of 2007-09, said Friday that its reserves to cover losses dropped into negative territory for the fiscal year that ended Sept. 30.


Quiz: The week in business








The agency has $30.3 billion in cash reserves to cover $46.6 billion in projected losses in coming years — a shortfall of $16.3 billion that could force it to tap the U.S. Treasury for the first time in its 78-year history to shore up its finances.


"Clearly, they're in trouble financially," said Guy Cecala, publisher of Inside Mortgage Finance. "I don't think there's any argument that FHA was ill-equipped to handle that overnight change to their business volume, and they've been playing catch-up ever since."


The FHA insures loans with down payments of as low as 3.5%, often to low-income borrowers, and its role in the mortgage market began expanding dramatically in 2007 as banks pulled back on lending in the face of plunging home prices — unless the agency guaranteed the loans.


Those mortgages, many of them now underwater, are a major drag on the finances of an agency that has been funded entirely through insurance premiums.


"With its dual mission of providing access to homeownership for underserved populations and supporting the housing market during tough times, there is little doubt that FHA helped prevent a much deeper crisis," Housing and Urban Development Secretary Shaun Donovan told reporters.


"That progress, however, has not been without stress," he conceded.


The FHA's net worth must not drop below 2% of the outstanding balances of the loans it guarantees. But in its annual actuarial report to Congress, the agency said its reserve ratio ended the fiscal year at -1.44%, down from the seriously low level of 0.24% at the end of the previous fiscal year. The figure was 0.5% at the end of 2010.


A final determination on tapping into Treasury's funds would not come until September and could hinge on continued improvement in the housing market, officials said. The agency also plans to boost its reserves by making such changes as increasing the premiums it charges homeowners to back their loans.


Obama administration officials hope the changes will help the FHA avoid drawing money from the U.S. Treasury, which the agency has the authority to do without seeking congressional approval.


"We are taking all the actions that we feel are appropriate, including increase in premiums [and] including changes in policies, to ensure that we are generating appropriate revenue moving forward," said acting FHA Commissioner Carol Galante.


"It is literally impossible to say that we will or won't need a draw," she said. "We are doing all of this to increase the likelihood that we will not."


The FHA's expanded role in the housing market has drawn criticism from some lawmakers and analysts, especially in light of the bailouts of seized housing finance giants Fannie Mae and Freddie Mac.


Taxpayers are on the hook for $137 billion in those rescues, though Fannie and Freddie have turned profitable and have started paying down what they owe.


But FHA's finances have been getting worse. One specific criticism is the agency's practice of lending to so-called rebound buyers, people who defaulted on a mortgage as recently as three years earlier.


Senate Banking Committee Chairman Tim Johnson (D-S.D.), said he was "deeply concerned" by Friday's FHA report and would call Donovan to testify about how to get the agency on a fiscally sustainable path.


Rep. Scott Garrett (R-N.J.) said the news of FHA's deteriorating finances was not surprising given warnings about its finances in recent years.


"This is yet another example in which the government has stepped in, mispriced risk, acted as a backstop and put the taxpayer in a position of bailing them out," he said. He blamed the Obama administration for not doing more to stabilize the agency's finances.


But Rep. Maxine Waters (D-Los Angeles) noted that the FHA has helped millions of people buy homes since it was created in the Great Depression. And although the agency's finances are in trouble, she said, Congress "should not act precipitously to limit loan availability, especially as the housing recovery remains fragile."


In 2009, the agency boosted premiums and took other steps to shore up its capital reserves. But the FHA's finances continued to be dragged down by the loans it backed from 2007 to 2009, Donovan said.


Mortgages backed by the agency in the last two years are performing much better, he said.


The FHA insures more than $1 trillion worth of mortgages. It has backed about 14% of new mortgages this year, up from less than 5% in 2007 but down from a high of nearly 30% in 2008.


The White House will use the report to help make its own projections of agency funding as part of President Obama's 2014 budget, to be released in February. At that point, the administration would determine whether taxpayer money is needed to prop up the FHA, with a final determination coming at the end of the fiscal year in September.


Continued improvement in the housing market would help the FHA's long-term outlook. And the changes coming soon also will help generate more revenue and reduce future losses, officials said.


The FHA plans to increase mortgage insurance premiums by about $13 a month for the average homeowner for new loans it guarantees, as well as end a policy for future loans that allowed homeowners to stop paying insurance premiums before the loan was paid off.


Among other changes are selling off at least 40,000 delinquent loans a year and streamlining short sales to reduce losses from foreclosures.


jim.puzzanghera@latimes.com





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