FHA Testifies Before House Committee
FHA Commissioner Carol Galante testified before the House Financial Services Committee last week. Her testimony focused on the critical role that FHA has been taking in the housing recovery. She also acknowledged FHA's financial woes, and explained the variety of things FHA has been doing to stabilize the Fund. In November, an independent actuarial projected the economic value of the FHA fund to be negative $16.3 billion. FHA is not bankrupt, and has more than $30 billion to pay claims on losses, but Congress requires them to hold a full 30 years-worth of reserves, and FHA does not have that.
Many of the Committee Members expressed significant concerns about the future of FHA and suggested that even greater reforms will be necessary. NAR ran the second in a series of ads explaining the importance of FHA and homeowners who rely on it.
Additional hearings are expected in the coming weeks.