“The Federal Housing Administration continues to serve American homebuyers well and is expected to do so into the future, according to a new financial report released Thursday by the Agency. With total reserves in excess of $30 billion and a plan to further strengthen its capital, the FHA is an important part of stabilizing and safely growing America’s housing market.
The FHA has been there to make mortgage lending possible when the private sector has not, creating opportunities for low- and moderate-income homebuyers who have the credit record, capacity to pay and desire to grab their piece of the American Dream. The truth is that without the FHA’s increased presence in the mortgage market in recent months, many houses around the country would be vacant, destabilizing communities.
As importantly, the FHA has been the fuel for first-time homeowners, enabling an estimated one-half of all first-time homebuyers achieve homeownership in the second quarter of 2009 alone.
The Agency’s book of business today is stronger than ever. Average FICO scores are nearly 700 on the recent books of business, significantly higher than earlier books that are driving current period losses.
The FHA is on the right track. It is serving qualified homebuyers, developing a plan to increase its capital strength, and laying the foundation to continue stabilizing the housing market until the private sector is back on its feet."
See more information on this from NeighborWorks Public Policy and Legislative Affairs division.