Click Cover to Read Digital Edition

AVAILABLE IN THE APP STORE
iPAD APP
iPHONE APP

UPCOMING EVENTS

 
Card Forum & Expo
April 22-25
Hilton Orlando Bonnet Creek
Orlando, Fla.
 
EMERGE: The Forum on Consumer Financial Services Innovation
June 2-4
Hyatt Regency Century Plaza
Los Angeles
 
Digital Banking Summit
June 2-4
Hyatt Regency Century Plaza
Los Angeles
 
2014 RDC Summit
Sept. 30 - Oct. 2
Las Vegas
 
ATM, Debit & Prepaid Forum
October 19-22
JW Marriott Desert Ridge
Phoenix
 
Money2020
November 2-6
Aria
Las Vegas
More events >  

Share |

Print Friendly and PDF

ABA Statement on FHA $16.3B Projected Losses

 

Nov 16 - The American Bankers Association has released the following statement by Frank Keating, ABA president and CEO, regarding the Federal Housing Authority's projected loss of $16.3 billion in its recently released annual report.

“The Congressionally required independent audit of the Federal Housing Administration is a troubling if not surprising reminder of the importance of balancing prudent underwriting and down payment requirements with efforts to serve borrowers who may otherwise not be able to access credit. 

“The erosion of the FHA's insurance fund does not come as a surprise. It is widely known that FHA, like much of the rest of the mortgage market, suffered from poor loan quality in the recent past.  How FHA – and potentially policymakers in Congress – deal with the erosion will be of vital importance.

“FHA must be made sound and able to function without taxpayer subsidy. Achieving that goal must be done in a way that does not drive private lenders from participating in the FHA program by making the process overly bureaucratic and lacking in certainty. It also must balance the needs of borrower's with good credit but limited down payment resources with the needs of the program to impose more sound underwriting and down payment requirements.

“The task will not be easy, but is necessary not just to preserve FHA, but also the broader mortgage market. The ABA stands ready to engage and assist as the process moves forward.”

 


Back