Housing:

Impact of FHA Loan Policy Changes on Financial Losses and Homebuyers

T-RCED-90-95: Published: Jul 10, 1990. Publicly Released: Jul 10, 1990.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed the impact of proposed policy changes to the Federal Housing Administration's (FHA) Mutual Mortgage Insurance (MMI) Fund on the Fund's cash position. GAO found that: (1) raising the mortgage ceiling to 95 percent of a state's median house price would have the greatest positive effect on the Fund's cash balance; (2) raising the mortgage ceiling will also generate the most new business for FHA, thereby increasing the government's financial risk in the form of additional insurance-in-force; (3) the proposed policy change to eliminate the financing in FHA-insured mortgages could help improve the Fund's soundness, but could also mean that a number of homebuyers may be forced out of the market; and (4) the losses being incurred by the MMI Fund do not result only from economic factors, but from poor management and waste, fraud, and abuse.

Dec 12, 2014

Oct 7, 2014

Aug 1, 2014

Mar 31, 2014

Mar 27, 2014

Mar 18, 2014

Feb 6, 2014

Jan 30, 2014

Jan 28, 2014

Oct 22, 2013

Looking for more? Browse all our products here