FHA Watch, March 2012
Edward J. Pinto | American Enterprise Institute
March 20, 2012

  • Download

Article Highlights

  • FHA is still firmly in the red, with net worth of -$13.45 billion.

    Tweet This

  • Ginnie/USDA may be the next crisis in the "Government Mortgage Complex."

    Tweet This

  • USDA Guaranteed Rural Housing Loan Program's default rate exceeds the FHA’s

    Tweet This

Read Issue 2, February 2012.
Read Issue 1, January 2012.

The Big Picture

FHA Watch, No. 3, March 2012

Download PDF The Federal Housing Administration (FHA) — along with the entire “Government Mortgage Complex” (Fannie Mae, Freddie Mac, Ginnie/USDA, Ginnie/FHA, and Ginnie/VA) of government-owned mortgage lenders — remains in deep trouble. Though its capital position improved slightly over last month, the FHA is still firmly in the red, with a current net worth of –$13.45 billion. Particularly alarming is the growth of the Ginnie/USDA division, which has a higher default rate than the FHA.

This Month’s Features

Spotlight on Insolvency
FHA Is Estimated to Have a Current Net Worth of –$13.45 Billion and an Estimated Capital Shortfall of $32–51 Billion

Spotlight on Delinquency
Total Delinquency Rate in February Declines to 16.47 Percent; Serious Delinquency Rate Eases to 9.73 Percent

Spotlight on Ginnie/USDA
Meet the FHA’s Country Cousin, the USDA Guaranteed Rural Housing Loan Program: Its Default Rate Exceeds the FHA’s

Spotlight on Best Price Execution
A Clean Sweep by the Ginnie/USDA and Ginnie/FHA Divisions

Spotlight on the Road to FHA Program Reform
Principles to Guide FHA Reform to Achieve Sustainable Homeownership Consistent with the FHA’s Low- and Moderate-Income Mission

Spotlight on the Road to FHA Fiscal Reform
Policy Changes Needed to Implement Reform Principle 2

The Road Map to FHA Reform
Specific Steps to Reform and the Status of Each

  • Download
Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Edward J.
Pinto
  • An executive vice president and chief credit officer for Fannie Mae until the late 1980s, Edward Pinto has done groundbreaking research on the role of government housing policies in the lead-up to the financial crisis. In particular, his data have revealed striking facts about the contributions of housing policy to the mortgage crisis. Two of his major research papers have been submitted to the Financial Crisis Inquiry Commission: "Government Housing Policies in the Lead-up to the Financial Crisis: A Forensic Study" and "Triggers of the Financial Crisis." At AEI Mr. Pinto is continuing his work on the role of housing policies in the financial crisis and researching policy considerations and options for rebuilding our housing-finance sector.
  • Phone: 240-423-2848
    Email: edward.pinto@aei.org

  • Assistant Info

    Name: Emily Rapp
    Phone: 202-419-5212
    Email: emily.rapp@aei.org
Show More | See Full Profile

What's new on AEI

image How to beat Memorial Day traffic forever
image Bernanke stumbles, markets react
image Don't edit the First Amendment
image Home Economics
close

Join the AEI Media List

AEI's press office frequently sends press advisories highlighting the availability of scholars to discuss particular news topics, as well as recent AEI products (such as studies, articles, and testimonies). Please enter your contact information below to be added to our media list.
JOIN MEDIA LIST
AEI on Facebook
Events Calendar
  • 20
    MON
  • 21
    TUE
  • 22
    WED
  • 23
    THU
  • 24
    FRI
Tuesday, May 21, 2013 | 5:00 p.m. – 6:30 p.m.
Free beer: Liberating libations from ‘Bootleggers and Baptists’

Join us for a discussion of the history and future of federal and state alcohol regulation and competition, followed by a reception with beer, wine, and spirits.

Wednesday, May 22, 2013 | 5:00 p.m. – 6:30 p.m.
NCLB sanctions: Tests taken, lessons learned

Join education scholars and practitioners for a discussion about the latest NCLB research and its implications for future education policy.

Thursday, May 23, 2013 | 12:00 p.m. – 1:30 p.m.
Competing visions of the common good: Rethinking help for the poor

What shared commitments do we have as citizens and neighbors to care for one another? How can a proper ordering of America’s political economy enable the most people to have the best life? At this event, Rep. Frank Wolf (R-VA), a longtime champion of human rights causes, and AEI President Arthur Brooks will join Wallis in addressing these and other questions.

No events scheduled this day.
No events scheduled this day.
No events scheduled today.
No events scheduled this day.
No events scheduled this day.