p Nightmare at FHA - December 2012

Selling hope, delivering harm 

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December 2012
















Mission misfire: 50 years of failure at the FHA

Since 1962, the Federal Housing Administration (FHA) has been selling the American dream of homeownership, but delivering despair. For 50 years, commentators have pointed out how FHA’s poorly designed underwriting policies result in financing failure for working-class families and a plague of foreclosures for working-class communities.


Spotlight on the FHA’s mission misfire
50 Years of Failure at the FHA

Spotlight on insolvency
FHA’s estimated GAAP net worth equals –$26.27 billion, with a capital shortfall of $46–65 billion

Spotlight on delinquency
Overall delinquency rate declines slightly

Spotlight on best price execution
FHA’s pricing dominance eases as the FHA announces premium changes

The road map to FHA reform
Fundamental and comprehensive reform of the FHA is urgently needed