FHA faces $1.3 billion capital shortfall, audit finds
2013-12-15 — washingtonpost.com
The Federal Housing Administration, which recently received an infusion of funds from the Treasury to cover projected losses, still faces a $1.3 billion capital shortfall, an independent audit released Friday found.
FHA Commissioner Carol Galante declined to comment at a briefing for reporters on whether the agency might need a second straight taxpayer subsidy. The government mortgage insurer received a $1.7 billion infusion from Treasury in September, the first time it has needed aid in its 79-year history.
The FHA is legally required to maintain a 2 percent capital ratio, which is a measure of its ability to withstand losses. It has not met that mark since 2009, but the audit said it would in the 2015 fiscal year, sooner than was estimated last year.
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