Stevens Says FHA Won't Need Federal Bailout Despite Falling Below Capital Reserve Requirement

摘要

The FHA Mutual Mortgage Insurance Fund (MMIF) won't need a federal bailout, even though rising losses are expected to push the capital reserve ratio below the statutory minimum of 2 percent, according to Assistant Secretary for Housing-FHA Commissioner David H. Stevens.rnStevens discussed the outlook for the insurance fund at an October 8 House housing subcommittee hearing.rnFHA delinquencies and defaults have been increasing, and Stevens said the pending independent actuarial review for fiscal 2009 is likely to show a capital reserve ratio under 2 percent, compared with 3 percent at the end of fiscal 2008.