WASHINGTON — The Senate Banking Committee examined the Federal Housing Administration's fiscal problems on Thursday, with lawmakers still divided on the best approach to take for reforming the troubled agency.

An independent audit last year determined the FHA faces a projected capital shortfall of $16.3 billion, meaning the agency could be forced to request its first-ever transfer from the Treasury Department, thanks in large part to historic losses sustained during the financial crisis.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.