FHA Watch, March 2012

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

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Edward J.
Pinto

What's new on AEI

Poverty in America—and What to Do About It
image GDP for second quarter: Strong headline, weak innards
image Paul Ryan and the emerging conservative reform agenda in higher education
image Democrats' impeachment fixation
AEI on Facebook
Events Calendar
  • 28
    MON
  • 29
    TUE
  • 30
    WED
  • 31
    THU
  • 01
    FRI
Tuesday, July 29, 2014 | 10:00 a.m. – 12:00 p.m.
Is Medicare's future secure? The 2014 Trustees Report

Please join AEI as the chief actuary for Medicare summarizes the report’s results, followed by a panel discussion of what those spending trends are likely to mean for seniors, taxpayers, the health industry, and federal policy.

Friday, August 01, 2014 | 10:30 a.m. – 12:00 p.m.
Watergate revisited: The reforms and the reality, 40 years later

Please join us as four of Washington’s most distinguished political observers will revisit the Watergate hearings and discuss reforms that followed.

Event Registration is Closed
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.

Don't Miss...