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FHA Delays Yearly Fiscal Report over ‘Accuracy’ of Methodology
HousingWire.com ^ | November 4, 2009 12:13 PM CST | By DIANA GOLOBAY

Posted on 11/04/2009 8:30:06 PM PST by fight_truth_decay

The public release of an independent actuarial study of the Federal Housing Administration (FHA) was delayed late Tuesday as the firm conducting the review completes additional tests. The supplemental tests come after FHA questioned the accuracy of the actuary’s modeling.

The audit of FHA’s fiscal year 2009 — which ended in September — was scheduled for release today in conjunction with a press conference addressing the FHA’s fiscal health and financial outlook.

A US Department of Housing and Urban Development (HUD) spokeswoman indicated hours before the scheduled release that the report would not be completed in time, and FHA commissioner David Stevens later issued a statement on the cause of the delay.

“FHA asked the independent actuary, IFE [Integrated Financial Engineering], to run additional economic scenario testing above and beyond what was going to be included in the actuarial study to better understand a broader range of risk scenarios,” Stevens said. “Based on these results, we raised questions about the accuracy of IFE’s modeling and IFE therefore advised us that we should not treat the report as final. IFE is now running additional tests to ensure that the final report is accurate.”

Stevens added, “We will only release a report that we are confident is accurate and fully reflects the health of the FHA.”

FHA, which insures lenders against default-related losses on qualifying mortgages, is congressionally mandated to maintain a 2% capital reserve ratio. Stevens in a mid-September statement indicated the forthcoming actuarial review would show the FHA’s reserve ratio dipping below that required level.


TOPICS: Culture/Society; Extended News; Government; News/Current Events
KEYWORDS: hud; ife

1 posted on 11/04/2009 8:30:07 PM PST by fight_truth_decay
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To: fight_truth_decay

can you say “cook the books?”


2 posted on 11/04/2009 8:31:55 PM PST by the invisib1e hand (Fight for it or lose it.)
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To: fight_truth_decay
Translation get your ass back in there and recook those books.
3 posted on 11/04/2009 8:32:14 PM PST by org.whodat (Vote: Chuck De Vore in 2012.)
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To: fight_truth_decay
Translation get your ass back in there and recook those books.
4 posted on 11/04/2009 8:32:31 PM PST by org.whodat (Vote: Chuck De Vore in 2012.)
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To: fight_truth_decay

heard a good one the other day: “If you torture the numbers enough, they’ll confess to anything.”


5 posted on 11/04/2009 8:34:49 PM PST by the invisib1e hand (Fight for it or lose it.)
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To: the invisib1e hand

Just go down the hall and talk to the stimulus people. They’re good at creative bean counting...


6 posted on 11/04/2009 8:37:02 PM PST by neodad (USS Vincennes (CG 49) "Freedom's Fortress")
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To: All
Who is the IFE? their People...

Senior leaders BIOS:

...previously with Freddie Mac, Price Waterhouse, Fannie Mae,
...previously with Freddie Mac, Federal Home Loan Bank Board
...previously with the World Bank Group¡¦s IFC, National Australia Bank, KPMG Peat Marwick, Fannie Mae ..
...Recent consulting engagements include: Farmer Mac, The Urban Institute, The World Bank, Countrywide Credit Industries...
...Lehman Brothers
Chief Credit Officer at Freddie Mac
experts of real estate and construction in China market

7 posted on 11/04/2009 9:03:22 PM PST by fight_truth_decay
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To: the invisib1e hand
HUD needs to scrub.

yitbos

8 posted on 11/04/2009 9:27:44 PM PST by bruinbirdman ("Those who control language control minds.")
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To: fight_truth_decay; Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; ...

The list, ping


9 posted on 11/04/2009 10:29:14 PM PST by Nachum (The complete Obama list at www.nachumlist.com)
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To: fight_truth_decay

CYA and when TSHTF blame someone else. Things are getting out of control of the handlers.


10 posted on 11/04/2009 10:33:23 PM PST by unkus
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