The Federal Housing Administration has substantially improved its estimates of defaults and claims on single-family loans, and the agency recently received a clean audit for the first time since 1990.The FHA has consistently underestimated claims over the years, raising the ire of White House budgeters and forcing outsider auditors to cite the agency's inability to predict the performance of its loans as a "material weakness." To improve estimates, the FHA recognized that loans with downpayment assistance have higher claims rates and incorporated credit scores in its performance models. As a result, the agency's claim estimate for fiscal year 2006 was "right on the money," said Judith May, director of the FHA's Office of Evaluation. The FHA predicted that lenders would submit 54,260 claims, and the actual total was 52,106. This estimate prompted the agency's outside auditor, Urbach Kahn & Werlin, to sign off on the agency's fiscal 2006 financial statement without citing a material weakness. It is the first clean audit the FHA has received since 1990, when Congress required an annual outside audit of the federal mortgage insurance fund.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
5h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
10h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
10h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago