The Federal Housing Administration insured more than 1.3 million single-family homes between October and June this year, with many of its mortgages performing better than an independent audit had predicted because of improved home prices and more trustworthy borrowers, according to an agency report to Congress. The FHA received 19,310 fewer insurance claims on bad mortgages in the first three quarters of the fiscal year, paying out $3.7 billion less than the audit had projected. These gains could be erased if housing prices sink, however, and the agency could post a loss, the FHA warned.

Related Summaries