Stevens, who served as FHA Commissioner from 2009 to 2111 noted findings from FHA's 2012 Actuarial Review that the capital ratio of the MMI Fund had fallen to negative 1.44 percent which prompted concerns that it might need a draw from the U.S. Treasury and raised questions about whether FHA's policies need to be adjusted.
These findings Steven's said do not mean that FHA has insufficient cash to pay insurance claims, a current operating deficit, or will need to immediately draw funds from Treasury; only the President's FY2014 budget can make that determination. It is not surprising that FHA is experiencing significant losses on loans made during the recent crisis, as well as losses on the large volume of its new business. Read more... http://www.mortgagenewsdaily.com/02282013_fha_reform.asp
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