Washington Report

Advocacy Updates from Washington D.C.

Senate Banking Committee Holds Hearing on FHA Audit

Last week, the Senate Banking Committee held a hearing entitled, "Oversight of FHA:  Examining HUD's Response to Fiscal Challenges".  The hearing examined the recent actuarial report which projected FHA to have a negative capital reserve ratio of 1.44%.  By law, FHA is required to keep 2% capital reserves.  They currently need an addition $13.47 billion in order to make these reserves.  FHA has announced several changes to try and raise revenue.  Several Senators expressed frustration with FHA's processes - saying they should have done more, sooner.  FHA expressed optimism that they would not need to draw from the Treasury.  NAR sent a letter of support for FHA and its critical role in the market today.  The letter urged Congress to show restraint in reacting to the audit.

NAR Letter to Congress