As the Federal Housing Administration is being asked to shoulder more responsibility for stabilizing the U.S. housing industry, questions are being asked about its capacity to perform such a critical role. At the core of these questions is a concern about the agency's financial soundness.

Two recent reports, the Mortgage Bankers Association's National Delinquency Survey for the third quarter of 2008 and the FHA's actuarial review for fiscal 2008, provide valuable insight into the state of the FHA program.

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