Board of Directors of mortgage insurance 'is becoming dangerously close to the farm is not too much cash for credit losses.
Annually independent actuarial reserves is the loss of FHA loans to 0.24% of its U.S. $ 1.1 billion in insured mortgages.FHA, which does not originate loans, but to reassure them, have gone to less than 5% share of the top of the housing boom is now over 30 percent. The auditor measures the FHA evaluating reserves for future losses, and is expected to continue to grow as housing prices fall and mortgage delinquencies still run very high.
FHA reserves are estimated at $ 2.6 billion as on September 30, the report said, down 45% from $ 4.7 billion last year. Congress mandates that the reserves of the FHA must be at least 2% of the total insurance in force, but it was not at that level for some years now. ECA estimates will not be back above that level until 2014, and it would be based on the current book of business.
