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

Defeating ISIS: AEI experts weigh-in before the president’s address on Wednesday
image Degrading, defeating, and destroying the Islamic State
image Wealth Building Home Loan: Building wealth through homeownership and retirement savings
image The $3 iPhone
AEI on Facebook
Events Calendar
  • 15
    MON
  • 16
    TUE
  • 17
    WED
  • 18
    THU
  • 19
    FRI
Tuesday, September 16, 2014 | 5:00 p.m. – 6:00 p.m.
The Constitution as political theory

Please join us for the third-annual Walter Berns Constitution Day Lecture as James Ceasar, Harry F. Byrd Professor of Politics at the University of Virginia, explores some of the Constitution’s most significant contributions to political theory, focusing on themes that have been largely unexamined in current scholarship.

Wednesday, September 17, 2014 | 8:10 a.m. – Thursday, September 18, 2014 | 1:30 p.m.
Third international conference on housing risk: New risk measures and their applications

We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.

Thursday, September 18, 2014 | 2:15 p.m. – 3:00 p.m.
Speaker of the House John Boehner on resetting America’s economic foundation

Please join us as Speaker John Boehner (R-OH) delivers his five-point policy vision to reset America’s economy.

Friday, September 19, 2014 | 9:15 a.m. – 11:00 a.m.
Reforming Medicare: What does the public think?

Please join us as a panel of distinguished experts explore the implications of the report and the consumer role in shaping the future of Medicare.

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