p Nightmare at FHA - January/February 2013

Selling hope, delivering harm 

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January/February 2013
















This Issue’s Highlight
FHA Fairy Tales

A number of fairy tales were told at the House Financial Services Committee’s February 6 hearing on the proper role of the Federal Housing Administration (FHA) in our mortgage insurance market. FHA Watch separates fact from fiction in this new recurring feature.

This Month’s Features:

  • FHA Fairy Tales
    Debunking two fairy tales from the Financial Services Committee’s February hearing
  • Spotlight on Insolvency
    FHA’s estimated GAAP net worth equals –$26.24 billion, with a capital shortfall of $46–65 billion
  • Spotlight on Delinquency
    Overall rate increases to 16.72 percent as 30-day delinquencies rise
  • Spotlight on Best Price Execution
    FHA’s pricing dominance eases as Ginnie’s MBS execution advantage over Fannie narrows
  • Spotlight on Differences Between the Practices of the VA and the FHA
    An overview of the veterans affairs residual income approach
  • End the Nightmare at FHA
    Fundamental and comprehensive reform of the FHA is urgently needed