The Government Accounting Office gave the Mutual Mortgage Insurance Fund a positive analysis June 30, adding strength to FHAs argument the fund is healthy, and a potential green light for lawmakers eager to pass the agencys legislative initiatives. The economic value of FHAs fund has clearly improved significantly in recent years, said Jacquelyn L. Williams-Bridgers, associate director of GAOs housing and community development issues division. And the fund is on the way to accumulating sufficient capital reserves to be considered actuarially sound under the law. The GAO study compared favorably with the actuarial review released by Price Waterhouse June 8. The assessment of the funds economic value exceeded Price Waterhouses by about 6%, although Williams-Bridgers said because of the 30-year durations of the funds loans, both estimates could be considered roughly equivalent. When Price Waterhouse released its audit in June, it showed the fund had an economic net worth of about $4.6 billion. GAO assessed the funds net worth at $4.9 billion, resulting in a capital ratio of 1.44% of the unamortized insurance-in-force at year-end.

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