FHA solvency update

Last week I had blogged this post regarding mounting losses at FHA.  Today, WSJ.com had a follow up with this article.  The bad news is that the FHA reserves level will drop below congressional mandated levels.  The good news is that the FHA has forecasted out 2 years from now and is projecting those reserves will rebound above that level with out any bailouts.  We don’t expect any changes to FHA loans at this point.