Sen. Rand Paul, the newly installed 'Tea Party' senator from Kentucky, wants to eliminate the Department of Housing and Urban Development (HUD), saying the agency played a key role in the housing crisis by implementing policies that "expanded risky mortgages," including subprime loans.

According to the Republican, if HUD (which includes FHA) is eliminated, the government would save $53 billion a year. FHA presently guarantees 30% of all mortgages funded today.

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