Skip to content
Subscriber Only

U.S. Senate FHA Solvency Measure Would Require Premium Increases

A U.S. Senate bill would set a floor on premiums charged by the Federal Housing Administration and require the government mortgage insurer to hold more money in reserve, according to two people briefed on the legislation.

Leaders of the Senate Banking Committee said they plan to introduce the measure next week. Lawmakers in both the Senate and the House of Representatives have vowed to address the finances of the FHA, which faces a projected shortfall of nearly $1 billion in its insurance fund in the current fiscal year. Defaults on loans the government mortgage insurer backed as the housing bubble burst depleted its reserve account.