Mortgage Financing : FHA's $7 Billion Reestimate Reflects Higher Claims and Changing Loan Performance Estimates

The U.S. Dept. of Housing & Urban Dev't. (HUD), through its Fed. Housing Admin. (FHA), provides insurance for private lenders against losses on home mortgages. FHA's largest insurance program is the Mutual Mortgage Insurance Fund, which currently is self-financed & operates at a profit. FHA submitted a re-estimateÓ of $7 billion for the credit subsidy & interest for the Fund as of the end of FY 2003, reflecting a reduction in estimated profits. Given this substantial re-estimate, this report determines what factors contributed to the $7 billion re-estimate & the underlying loan performance variables influencing these factors. Also, assesses how the loan performance variables underlying the re-estimate could impact future estimates of new loans. Illus.Shear, William B. is the author of 'Mortgage Financing : FHA's $7 Billion Reestimate Reflects Higher Claims and Changing Loan Performance Estimates', published 2006 under ISBN 9781422304570 and ISBN 1422304574.