Modernizing the Federal Housing Administration

FHA’s single-family mortgage insurance program is one of the federal government’s tools for stabilizing mortgage markets and promoting sustainable homeownership.
Prior GAO work has addressed the deteriorating financial performance of the program, weaknesses in FHA’s risk management, and shortcomings in the agency’s workforce and information technology.
Highlights of GAO-07-708 (PDF)
Recent program growth and efforts to modernize FHA's insurance products and use the insurance program to refinance troubled conventional loans could help address ongoing problems in the mortgage market but could also put additional strain on FHA's capabilities and increase the likelihood that the program will require appropriations.
Addressing these risks and challenges will require continued improvements in FHA’s risk management practices and capacity.

^ Back to topWhat Needs to Be Done

Give more attention to the insurance fund's ability to withstand appropriate stresses, including severe scenarios that capture worse-than-expected loan performance due to economic conditions and other factors, such as changes in policy and the conventional mortgage market.
Full Report of GAO-01-460 (PDF, 86 pages)
Mitigate the risk of new or significantly changed mortgage products by limiting their initial availability and developing monitoring methods to measure their success or failure.
Highlights of GAO-05-194 (PDF)
Ensure that FHA's information technology supports the agency's mission by developing implementation schedules, evaluating the performance of technology investments, and closing skill gaps in the information workforce.
Highlights of GAO-09-675 (PDF)