FHA Said It Doesn't Need A Subsidy from Congress

FHA Commissioner David Stevens said today the agency would not need a congressional subsidy even if its capital reserve ratio fell below 2%. The comment follows reports in the Wall Street Journal today discussing the issue and suggesting the agency may need a taxpayer bailout.

In a statement Stevens said, "Even if that level falls below 2 percent, FHA continues to hold more than $30 billion in its reserves today, or more than 5 percent of its insurance in force. Given this reserve level, FHA will not need a congressional subsidy even if the congressional capital reserve calculation falls below 2 percent."

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