Reports came out today that in the face of increasing foreclosures on homes insured by the Federal Housing Administration, the cash reserves for the FHA will soon be dipping below mandated levels. We get this from a recent AP story:
The Federal Housing Administration said Friday its cash cushion will dip below mandated levels for the first time, but officials insist it won’t need a taxpayer rescue.
The agency, a growing source of funds for first-time homebuyers, faces mounting concerns that it will soon need a taxpayer bailout. As of this summer, about 17 percent of FHA borrowers were at least one payment behind or in foreclosure, compared with 13 percent for all loans, according to the Mortgage Bankers Association.
Rising defaults mean the FHA’s reserves may sink below the 2 percent mark required by federal law. The FHA says a study being sent to Congress in November is expected to show that ratio dipping below required levels for the first time.
David Stevens, the agency’s commissioner, however, said in an e-mailed statement that FHA “will not require taxpayer assistance.”
January 11th, 2019 at 11:14 am
I hope some one will help me with a first time home buyer I’m doing everything i have to do as far as 0 down and first time home buyer being on SSDI for 19 yrs i can be reached at 804-716-8724