In spring 1972, the Federal Housing Administration (FHA), an agency within HUD, was struck by scandal. Since passage of the Housing and Urban Development Act of 1968 and the creation of the Government National Mortgage Association (Ginnie Mae), it had been responsible for helping the poor buy homes in inner-city areas via government-backed mortgages. These were financed by mortgage-backed securities, the first issues of which Romney had announced in 1970. A number of FHA employees, along with a number of real estate firms and lawyers, were indicted for a scheme in which the value of cheap inner city homes was inflated and they were sold to black buyers who could not really afford them, based on using those government-backed mortgages. The government was stuck for the bad loans when owners defaulted, as the properties were overvalued and could not be resold at the inflated prices. Romney conceded that HUD had been unprepared to deal with speculators and had not been alert to earlier signs of illegal activity at the FHA. The FHA scandal gave Nixon the ability to shut down HUD's remaining desegregation efforts with little political risk; by January 1973, all federal housing funds had been frozen.