The FHA Emergency Fiscal Solvency Act (H.R. 4264), to insure solvency of the agency’s single-family insurance fund, passed the House 402-7 last Sept. and is awaiting action before the Senate Banking, Housing and Urban Affairs Committee. House Financial Services Committee Chairman Spencer Bachus sent a letter to Sen. Tim Johnson, Chairman of the Senate committee, urging the Senate to pass the bill asap lest FHA becomes, like Fannie Mae and Freddie Mac, another liability at the taxpayer’s expense. When HUD Secretary Shaun Donovan appeared before the House Financial Services Committee Dec. 1, 2011, he assured the panel FHA was in good health. Now, an independent actuarial firm tells MHProNews the FHA’s capital ratio had dropped below zero to negative 1.44, and that the insurance fund’s economic value is negative $16.3 billion.
(Image credit: FHA)