FOXNews.com: Audit suggests Federal Housing Administration may need taxpayer funding as projected losses hit $16.3 billion

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Audit suggests Federal Housing Administration may need taxpayer funding as projected losses hit $16.3 billion Nov 16th 2012, 11:33 The Federal Housing Administration's projected losses hit $16.3 billion at the end of September, according to an independent annual audit to be released Friday, a much larger figure than had been forecast earlier. The report suggests the FHA will require taxpayer funding for the first time in its 78 years, though that won't be decided until early next year. Housing officials said late Thursday they would announce a series of steps on Friday to raise revenue and avert such a milestone. Those steps are likely to raise the cost of FHA-backed mortgages for future borrowers. The FHA is required to maintain enough cash to pay for projected losses on the $1.1 trillion in loans that it guarantees. Last year, the independent audit said the FHA would have $2.6 billion after covering estimated losses. But the latest forecasts show that while the FHA currently has reserves of $30.4 billion, it expects to lose $46.7 billion on the loans it has guaranteed, resulting in a $16.3 billion deficit. Click for more from The Wall Street Journal.

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