The Federal Housing Administration is facing its own fiscal cliff amid dwindling capital reserves, raising the possibility that the agency may have to tap Treasury for funding for the first time in its 78-year history.

This week, FHA will release its annual independent actuarial report that is expected to show that its capital reserve ratio – which measures reserves held in excess to cover projected losses – will fall into negative territory for the first time, according to people briefed on the report's findings. By law, the FHA must maintain a 2% buffer.

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