FHA Watch, May 2012

Article Highlights

  • FHA capital position worsens in April, with current net worth at -$13.79 billion

    Tweet This

  • Government’s growing dominance in home mortgage and student loan markets is concerning

    Tweet This

  • In 2011, Government Mortgage Complex accounted for 88 percent of all first-mortgage originations

    Tweet This

Read Issue 4, April 2012.
Read Issue 3, March 2012.

This Issue’s Highlight

FHA Watch, No. 5, May 2012

Download PDF
Spotlight on the Government’s Growing Monopoly of Consumer Lending and Private Debt:
Outstanding consumer debt totals over $12 trillion, constituting 44 percent of all outstanding private debt (both consumer and business). Home mortgages ($9.8 trillion) and student loans ($0.9 trillion) comprise the two largest asset classes within the consumer debt sector. In 2011, the Government Mortgage Complex accounted for 88 percent of all first-mortgage originations in the United States, with the government also controlling an estimated 90 percent of the student loan market. The government’s growing dominance in the home mortgage and student loan categories is cause for concern, posing a threat to private investors, borrowers, and taxpayers.

This Month’s Features

Spotlight on Insolvency
FHA’s Position Worsened in April, with an Estimated Current Net Worth of –$13.79 Billion and a Capital Shortfall of $33–52 Billion

Spotlight on Delinquency
Total Delinquency Rate Increased in April to 15.97 Percent Because of Increase in Thirty-Day Delinquencies; Serious Delinquency Rate Eased to 9.42 Percent

Spotlight on Best Price Execution
The Government Mortgage Complex’s Ginnie Brands Demonstrate Pricing Dominance over Fannie Mae

Spotlight on the Government Mortgage Complex’s 2011 Market Share
Government Mortgage Complex Accounted for 88 Percent of All 2011 First-Mortgage Originations

Spotlight on the Government’s Growing Monopoly of Consumer Lending
Government-Controlled Home Mortgage and Student Loan Asset Classes Account for 86 Percent of Outstanding Consumer Debt 

Spotlight on the Road to FHA Fiscal Reform
Policy Changes Needed to Implement Fiscal Reform Principle 4

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

Expanding opportunity in America
image Moving beyond fear: Addressing the threat of the Islamic state in Iraq and Syria
image Foreign policy is not a 'CSI' episode
image The Air Force’s vital role
AEI on Facebook
Events Calendar
  • 21
    MON
  • 22
    TUE
  • 23
    WED
  • 24
    THU
  • 25
    FRI
Monday, July 21, 2014 | 9:15 a.m. – 11:30 a.m.
Closing the gaps in health outcomes: Alternative paths forward

Please join us for a broader exploration of targeted interventions that provide real promise for reducing health disparities, limiting or delaying the onset of chronic health conditions, and improving the performance of the US health care system.

Monday, July 21, 2014 | 4:00 p.m. – 5:30 p.m.
Comprehending comprehensive universities

Join us for a panel discussion that seeks to comprehend the comprehensives and to determine the role these schools play in the nation’s college completion agenda.

Tuesday, July 22, 2014 | 8:50 a.m. – 12:00 p.m.
Who governs the Internet? A conversation on securing the multistakeholder process

Please join AEI’s Center for Internet, Communications, and Technology Policy for a conference to address key steps we can take, as members of the global community, to maintain a free Internet.

Thursday, July 24, 2014 | 9:00 a.m. – 10:00 a.m.
Expanding opportunity in America: A conversation with House Budget Committee Chairman Paul Ryan

Please join us as House Budget Committee Chairman Paul Ryan (R-WI) unveils a new set of policy reforms aimed at reducing poverty and increasing upward mobility throughout America.

Event Registration is Closed
Thursday, July 24, 2014 | 6:00 p.m. – 7:15 p.m.
Is it time to end the Export-Import Bank?

We welcome you to join us at AEI as POLITICO’s Ben White moderates a lively debate between Tim Carney, one of the bank’s fiercest critics, and Tony Fratto, one of the agency’s staunchest defenders.

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