last year the ratio was 0.5%. Federal law requires that aAbove 2%

United States real estate market is likely to increase a new victim: United States Federal Housing Administration (FHA). Local time, released on November 15, United States Federal Housing Administration (FHA) independent annual audit reports that secured a $ 1 trillion of mortgage loan FHA cash reserves had fallen to very low levels, 50% likely to run out of money next year and seek taxPeople helped. Reported that if the United States housing market failed to rebound next year, FHA may need United States Treasury Department's $ 43 billion bailout. While the other two companies taken over by the Government of the mortgage Giants Fannie Mae and Freddie Mac have been spending United States taxpayers $ 170 billion bailout. Current United States House prices still in the process of a double bottom, prices of the benchmark standard and poor's Kay-Shiller 20-City house price index in August of this year decreased by 3.8%, dropped by more than 30% compared with the pre-crisis peak. Housing prices continue to fall, causing housing loan default rate continues to rise over the past three years, FHA housing of a 37 billion dollar insurance claims payments for breach. FHA report estimates that as of September 30 swtor power leveling, the AgencyCash reserve just US $ 2.6 billion, more than $ 4.7 billion in the same period of last year fell by 45%. Think tanks in Washington United States Enterprise Institute (AEI) last week released a report written by Wharton real estate Professor Jeseph Gyourko, saying the cost of bailout of FHA may be as high as $ 100 billion. 77-year history, or looking for the first time the blazeFHA was founded during the great depression, it does not lend itself, but to meet a certain standard of mortgage guarantee, charge a premium to cover defaulted mortgage costs. Since its creation, the FHA guarantees a total of 40 million United States Housing Authority, its security last year three-fourths buyers are first-time buyers. If Fannie and Freddie is the invisible bearInsurance, as security for government agency FHA is dominant. FHA insured mortgages only 3.5% down payment, if buyers stop payments, FHA want to charge buyers premium to the Bank to pay the remaining costs. FHA since the bursting of the subprime bubble started to play a major role in its loan portfolio grew by more than three times. Since then, FHA financingSources begin to consumption, lending its losses mainly came from 2006-2009. FHA a year of independent auditor to assess damage that may arise in the future. This year, FHA expects cash reserves amounted to only guarantee loans totalling $ 1.1 trillion 0.24%; last year the ratio was 0.5%. Federal law requires that aAbove 2%, FHA never reaching from two years ago. Independent audit report assumes that United States House prices will fall until it is bottomed 5.6% in 2012, prices will rise 1.2%. In this way, FHA would avoid to the taxpayer to seek relief, and will be in 2014 the cash reserve proportion of secured loans raised to 2% level of compliance. ButCome to a view that still appears likely to 50% prices fell more than expected, as FHA reserve is not sufficient, to the firm, which owns 77-year history of the institutions will have to seek government aid for the first time. In the case of more pessimistic, prices decreased by 9%,FHA next year if you want $ 13 billion bailout. If House prices decreased by 16% per centDon't need to inject $ 29 billion and US $ 43 billion. Report says, "is likely to need much assistance mainly to see the next how much short term prices will fall. "But the FHA's officials believe, very low possibilities of the institution to seek relief. FHA Executive Director Carol Galante11 15th, "said only cases that have dropped sharply in price may be requiredTo further support. There are no signs of obvious no consensus that prices will fall sharply. "Government intervention is difficult to quit Washington policymakers were still discussing other issues, namely, how the Federal Government should withdraw from mortgage mortgage market support measures, without undermining the real estate market recovery. White House real estate adviser Peter Swire stated that noFHA support prices may fall more heavily. Withdrawal of the past four years, the private sector from the mortgage market, FHA-guaranteed market share continues to expand. 2006 FHA guarantee 5% of the United States mortgage loans, last year had increased to one-third. FHA, and "two rooms" last year secured a total of 90% mortgage home loans over the past few years has been the United StatesUnique lubricant. Freddie Mac lost $ 6 billion third-quarter results star wars the old republic power leveling, and further to the Government seeking $ 6 billion capital rescue. At this point, the scale of Fannie and Freddie bailout was US $ 169 billion. FHA currently endangered situation also meant that United States Government plans to rescue the housing market will need more cost and effort. FHA-guaranteed borrowers often simplyPay a small amount of down payment, when house prices fell slightly, or his job, is likely to default. By the end of September, FHA-backed 630,000 housing loan has defaulted the 3-4 months of payment. The past three years, there have been numerous reports FHA is expected eventually to insolvent. Wharton real estate Professor Jeseph Gyourko says, "any questionProblems, costs are high. " He said that the FHA own leverage increases, along with its guaranteed home loan leverage also increases, to the United States taxpayers, FHA has become extremely dangerous, once its expansion strategy didn't work will have a major downside risk. He said that because of the systemic underestimates future defaults and losses from defaults appears, FHA expansion strategiesIs likely to fail. "FHA actually have insufficient capital, even if the housing market is not accidental deterioration, the Agency may require a capital injection of approximately between 50 billion to 100 billion dollars. "