September 2012
This Issue’s Highlight
FHA’s financial condition continues to decline; Denial Dial once again reset to lowest level ever
One in six Federal Housing Administration (FHA) loans continued to be delinquent in August as the total delinquency rate eased slightly to 16.35 percent. This was due to modest declines across all delinquency categories.
In August, the FHA had an estimated current net worth of –$26.30 billion and a capital shortfall of $46–65 billion. The FHA’s estimated net worth on a generally accepted accounting principles (GAAP) basis has declined by $10 billion since the end of FY 2011. As a result of these data, the Denial Dial has been reset to –2.43 percent, eclipsing the previous low set in July 2012.
The month’s features:
Spotlight on returning the FHA to its traditional mission
Reforms Needed to Get the FHA Back on Track
Spotlight on insolvency
FHA’s Estimated Net Worth Continues Sharp Decline to –$26.30 Billion, with a Capital Shortfall of $46–65 Billion
Spotlight on delinquency
One in Six FHA Loans Delinquent in August; Serious Delinquency Rate Nearly Unchanged at 9.49 Percent
Spotlight on best price execution
Fannie Guarantee Fee Increase May Further Entrench Ginnie Brands’ Pricing Dominance
The road map to FHA reform
House Passes FHA Emergency Solvency Act Including Policy Changes Recommended by FHA Watch
