The financial health of a top U.S. mortgage program worsened this year, which could make it harder for affordable-housing advocates to persuade a key government agency to cut the fees it charges lower-income borrowers.
The capital reserves of the Federal Housing Administration fell by about $2 billion to $25.6 billion for the year ended in September, according to a U.S. Department of Housing and Urban Development report. The decline means the FHA is barely meeting the statutory minimum for money it must set aside to cover soured mortgages.
The FHA doesn't make loans. It sells insurance, paid by borrowers, on mortgages that can have a down payment of as low as 3.5% and a credit score of 580. The program is commonly used by first-time home buyers and other borrowers with little wealth. Should borrowers fail to make their payments, the insurance makes lenders whole.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
