President Obama's fiscal-year 2015 budget projects the Federal Housing Administration won't require a taxpayer subsidy this year as the agency's efforts to shore up its finances have offset losses from defaulted loans.

The government mortgage insurer has been raising fees and tightening underwriting to pay for a wave of soured mortgages it backed as the housing bubble burst. Last year, the FHA required a $1.7 billion cash infusion from the Treasury, the first ever in its 80-year history. The agency must keep enough cash on hand to cover all projected future losses.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry