FHA Reserves Sustain ‘Significant Losses,’ But Reserve Will Hold Up Under Housing Stress
November 12, 2009
The annual audit of the FHA’s financial position revealed that the program sustained substantial fiscal losses during fiscal 2009 mostly from older books of business, but its reserve levels will remain above zero based on economic projections from a third-party auditor. FHA’s capital reserve ratio measures reserves held in excess of those needed to cover projected losses over the next...