FHA Budget Requests Treasury Draw

The President's FY14 budget request was released last week. In it, FHA stated that it may need to draw $943 million from the Treasury in order to hold 30-years worth of reserves. 

FHA currently has approximately $32 billion in cash available to pay claims, but is required by law to hold reserves sufficient to pay all estimated claims over 30 years.  NAR remains confident that FHA has already taken many of the necessary steps to help stabilize the fund and rising home prices and continued market improvements should also help improve its future financial condition. 

The final determination about the FHA draw will not be made until Sept. 30, 2013.