Tag Archives: HUD: FHA does not need immediate Treasury rescue

The U.S. Department of Housing and Urban Development reacted to the Federal Housing Administration audit report, stating that a petition to Congress for a Treasury draw is not immediately needed. With the housing market still in recovery, the capital reserve ratio of the fund used to support single-family mortgage and reverse mortgage insurance programs dropped to a negative 1.44%, with a negative economic value of $16.3 billion. Given the downturn, this does not mean FHA has insufficient funds to pay for insurance claims, a current operating deficit or a need to […]

The U.S. Department of Housing and Urban Development reacted to the Federal Housing Administration audit report, stating that a petition to Congress for a Treasury draw is not immediately needed. With the housing market still in recovery, the capital reserve ratio of the fund used to support single-family mortgage and reverse mortgage insurance programs dropped to a negative 1.44%, with a negative economic value of $16.3 billion. Given the downturn, this does not mean FHA has insufficient funds to pay for insurance claims, a current operating deficit or a need to […]