FHA May Need Taxpayer Aid to Bolster Reserve Fund, Report Says
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The Federal Housing Administration may need taxpayer aid or higher premiums to bolster its mortgage insurance fund after reserves fell to a record low this year, according to an analysis presented to Congress.
The FHA, which has paid out $37 billion in claims related to defaulted mortgages in the past three years, faces a 50 percent chance of having to raise money because its net worth has fallen to near zero, according to an independent analysis cited in the agency’s annual actuarial report released today.