FHA reserves to fall below required level

Discussion in 'Economics' started by Wallace, Sep 18, 2009.

  1. "The Federal Housing Administration is losing so much money on delinquent
    mortgage loans that its reserves will drop below the required 2% of loans, FHA
    Commissioner David Stevens told the Washington Post in a story published
    Friday. Stevens said the agency would announce steps on Friday to boost the
    reserves, without asking Congress to bail out the agency. The FHA will ask
    that banks take responsibility for losses due to fraud, he said. The FHA is now
    guaranteeing about 23% of new mortgages, up from around 3% in 2006." end