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FHA Audit shows smaller projected shortfall in 2013

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Update: FHA ISSUES ANNUAL FINANCIAL STATUS REPORT TO CONGRESS

Nick Timiraos at the WSJ has some details: Audit Shows FHA Faces .3 Billion Deficit

The Federal Housing Administration ran a projected shortfall of .3 billion at the end of September, down from a much larger projected deficit of .3 billion one year earlier, according to the agency’s independent financial review, released Friday.

In September, the FHA received a .7 billion infusion from the U.S. Treasury, its first such injection in its 79-year history. The agency is required to maintain enough cash to pay for projected losses on the more than trillion in loans that it guarantees. A separate report next year from White House budget officials will determine whether the FHA needs additional taxpayer money.

Most of the agency’s losses stem from loans made between 2007 and 2009, when the housing bust deepened. Loans made since 2010 are profitable, the report found.


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