p Nightmare at FHA - March 2013

Selling hope, delivering harm 

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This Issue’s Highlight
FHA Fairy Tales

A number of fairy tales were told by FHA Commissioner Carol Galante in remarks on March 7 at J.P. Morgan’s Securitized Products Research Conference. FHA Watch separates fact from fiction in this new recurring feature.

This Month’s Features:

  • FHA Fairy Tales
    Debunking Two Fairy Tales from a Speech by FHA Commissioner Carol Galante on March 7
  • FHA’s Family vs. Loan Claim Rate
    Since 1975, FHA’s Average Claim Rate on a Borrower Basis Is 1 in 8 Families (12.5 Percent)
  • Spotlight on Insolvency
    FHA’s Estimated GAAP Net Worth Equals –$27.31 Billion, with a Capital Shortfall of $47–66 Billion
  • Spotlight on Delinquency
    Overall Rate Steady at 16.7 Percent with Rise in 60-Day Delinquencies
  • Spotlight on Best Price Execution
    FHA, VA, and USDA’s Pricing Dominance Little Changed
  • Spotlight on Differences Between the Practices of the VA and the FHA
  • End the Nightmare at FHA
    Fundamental and Comprehensive Reform of the FHA Is Urgently Needed