FHA Fund Fails To Meet Minimum For 3rd Year, GAO Says

Law360, New York (March 29, 2012, 4:47 PM EDT) -- Increasing insurance obligations, higher-than-expected default rates and poor risk-management policies have kept the capital ratio of the Federal Housing Administration's mortgage insurance fund below statutory minimums for the third straight year, the U.S. Government Accountability Office reported Thursday.

In testimony delivered to the House Appropriations Committee Thursday morning, Matthew J. Scire, director of the GAO's Financial Markets and Community Investment team, said the capital ratio for the FHA's Mutual Mortgage Insurance Fund — the ratio of the fund's economic value to its insurance obligations — was...
To view the full article, register now.