FHA Insurance Fund Returns to Mandated Reserve Level

The Federal Housing Administration said today that the capital ratio for its mortgage insurance fund has reached 2.07 percent — the first time since 2008 that the fund has reached the congressionally mandated 2 percent level. The value of the fund rose by $19 billion in FY 2015, attributed to improvements in the housing market and better risk management by FHA.

The improvements come just three years after the fund’s capital ratio dipped to -1.44 percent in 2012 and two years after FHA received a $1.7 billion taxpayer cash infusion to cover losses to the fund.