Monday, November 17, 2014

WSJ: Audit shows FHA Back in Black

by Bill McBride on 11/17/2014 12:59:00 PM

Update: Here is the summary Summary of FY2014 FHA Annual Report to Congress on the Financial Health of the Mutual Mortgage Insurance Fund

Joe Light at the WSJ writes: Federal Housing Authority in the Black for First Time Since 2011

The audit found that the FHA’s insurance fund had an economic value of $4.8 billion at the end of September, up from negative $1.1 billion last fiscal year. Its capital-reserve ratio, which the FHA is supposed to keep above 2%, grew to 0.41%. While an improvement, it was still short of last year’s projection.
More important, the report estimated that the FHA won’t return to the congressionally mandated 2% threshold until 2016, a year later than formerly estimated.
Recent FHA loans have performed very well, and the better performance combined with higher fees has led to the improvement.