FHA Reportedly Concealed $115B Loss Scenario: Issa

Federal Housing Administration (FHA) could face losses of up to $115 billion over 30 years under severe economic circumstances, according to an undisclosed ‘stress test’ conducted last year. The federal mortgage insurer however reported in its last annual audit that, under current conditions, FHA’s projected losses over 30 years could exceed its reserves by $13.5 billion. White House Budget Team estimated FHA loss at $943 million FHA reported in October that losses on defaulted loans could force the federal mortgage insurer to seek tax payer aid up to $16.3 billion. However White House budget writers pruned the estimated loss to…