FHA Watch, September 2012

Article Highlights

  • FHA’s financial condition continues to decline; Denial Dial once again reset to lowest level ever.

    Tweet This

  • House passes FHA Emergency Solvency Act including policy changes recommended by FHA Watch.

    Tweet This

  • One in six FHA loans delinquent in August; serious delinquency rate nearly unchanged at 9.49 percent.

    Tweet This

Subscribe to AEI's Financial Services emails.

FHA Watch, No. 9, September 2012

Download PDF
This Issue's Highlight

FHA’s Financial Condition Continues to Decline; Denial Dial Once Again Reset to Lowest Level Ever

One in six Federal Housing Administration (FHA) loans continued to be delinquent in August as the total delinquency rate eased slightly to 16.35 percent. This was due to modest declines across all delinquency categories.

In August, the FHA had an estimated current net worth of –$26.30 billion and a capital shortfall of $46–65 billion. The FHA’s estimated net worth on a generally accepted accounting principles (GAAP) basis has declined by $10 billion since the end of FY 2011. As a result of these data, the Denial Dial has been reset to –2.43 percent, eclipsing the previous low set in July 2012.

This Month’s Features

Spotlight on Returning the FHA to Its Traditional Mission
Reforms Needed to Get the FHA Back on Track

Spotlight on Insolvency
FHA’s Estimated Net Worth Continues Sharp Decline to –$26.30 Billion, with a Capital Shortfall of $46–65 Billion

Spotlight on Delinquency
One in Six FHA Loans Delinquent in August; Serious Delinquency Rate Nearly Unchanged at 9.49 Percent

Spotlight on Best Price Execution
Fannie Guarantee Fee Increase May Further Entrench Ginnie Brands’ Pricing Dominance

The Road Map to FHA Reform
House Passes FHA Emergency Solvency Act Including Policy Changes Recommended by FHA Watch

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Edward J.
Pinto

What's new on AEI

Making Ryan's tax plan smarter
image The teacher evaluation confronts the future
image How to reform the US immigration system
image Inversion hysteria
AEI on Facebook
Events Calendar
  • 01
    MON
  • 02
    TUE
  • 03
    WED
  • 04
    THU
  • 05
    FRI
Wednesday, September 03, 2014 | 9:00 a.m. – 10:30 a.m.
From anarchy to Augustus: Lessons on dealing with disorder, from Rome’s first emperor

We invite you to join us for two panel discussions on how Augustus created order from chaos 2,000 years ago, and what makes for durable domestic and international political systems in the 21st century.

Wednesday, September 03, 2014 | 12:00 p.m. – 1:30 p.m.
Multiple choice: Expanding opportunity through innovation in K–12 education

Please join us for a book launch event and panel discussion about how a marketplace of education options can help today's students succeed in tomorrow's economy. Attendees will receive a complimentary copy of the featured book.

Thursday, September 04, 2014 | 12:00 p.m. – 1:30 p.m.
How conservatives can save the safety net

Please join us for a luncheon event in which our panel will discuss what conservatives can learn from how liberals talk and think about the safety net and where free-market economics, federalism, and social responsibility intersect to lift people out of poverty.

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