The Federal Housing Administration's Mutual Mortgage Insurance Fund ended fiscal year 2010 in better financial shape than its auditors expected with the agency projecting foreclosure claims peaking in the summer of 2011.
FHA's total capital resources grew by $1.5 billion during fiscal year 2010, ending the year (Sept. 30) at $33.3 billion.
'This compares favorably to last year's projection by the independent actuaries that total capital resources would decline by approximately $5 billion," FHA said in its quarterly report to Congress.
The new actuarial report for FY 2011 will be released in mid-November.
Meanwhile, FHA disclosed that net losses on claims stayed within the range of actuarial predictions for FY 2010.
"Based on current, new 90-day delinquency rates and foreclosures starts, we anticipate that the number of conveyance claims will peak in the third or fourth quarter of 2011," FHA says.
