HUD released its much anticipated audit of the FHA's "reserve fund" this morning and the central message seemed to be: "Everything's okay, folks. You can all go home now." To their credit, HUD secretary and assistant secretary -- Shaun Donovan and David Stevens, respectively -- spent almost two hours with the media (and the public at large) explaining that FHA's reserves are under extreme pressure but they believe the fund will stay in the black. As for lenders that are abusing the program, Mr. Stevens had a clear message: the agency has "suspended or eliminated" eight firms from the program over the past few months and is watching closely...
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