Last week, the Senate Banking Committee held a hearing entitled, "Oversight of FHA: Examining HUD's Response to Fiscal Challenges". The hearing examined the recent actuarial report which projected FHA to have a negative capital reserve ratio of 1.44%. By law, FHA is required to keep 2% capital reserves. They currently need an addition $13.47 billion in order to make these reserves. FHA has announced several changes to try and raise revenue. Several Senators expressed frustration with FHA's processes - saying they should have done more, sooner. FHA expressed optimism that they would not need to draw from the Treasury. NAR sent a letter of support for FHA and its critical role in the market today. The letter urged Congress to show restraint in reacting to the audit.