Audit: U.S. housing agency faces $16.3B losses
The Associated Press
Published Friday, November 16, 2012 3:12PM EST
WASHINGTON -- A report shows a federal agency that insures mortgages for millions of low- and middle-income borrowers is facing losses of $16.3 billion and may require taxpayer support.
An annual independent audit of the Federal Housing Administration released Friday estimated losses that were steeper than earlier projections. That suggests the high number of mortgage defaults triggered by the housing crisis has reduced the FHA's reserve funds.
The Department of Housing and Urban Development, which oversees the FHA, stressed the agency has sufficient cash to pay insurance claims against mortgage defaults.
Still, HUD said the Obama administration will consider seeking taxpayer assistance for the agency. That will be decided early next year when the administration puts together its budget request for fiscal 2014.