by Calculated Risk on 12/13/2013 10:53:00 AM

Update: FHA ISSUES ANNUAL FINANCIAL STATUS REPORT TO CONGRESS

Nick Timiraos at the WSJ has some details: Audit Shows FHA Faces $1.3 Billion Deficit

The Federal Housing Administration ran a projected shortfall of $1.3 billion at the end of September, down from a much larger projected deficit of $16.3 billion one year earlier, according to the agency's independent financial review, released Friday.
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In September, the FHA received a $1.7 billion infusion from the U.S. Treasury, its first such injection in its 79-year history. The agency is required to maintain enough cash to pay for projected losses on the more than $1 trillion in loans that it guarantees. A separate report next year from White House budget officials will determine whether the FHA needs additional taxpayer money.
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Most of the agency's losses stem from loans made between 2007 and 2009, when the housing bust deepened. Loans made since 2010 are profitable, the report found.