United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2001-02-28 monographic deposited born digital 86 p. GA 1.13:GAO-01-460 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-460 P0b002ee18039ade1 f:d01460 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-01-460 machine generated eng fdlp REPORT GAOREPORTS-GAO-01-460 GAO-01-460 Funds management Mortgage loans Econometric modeling Economic analysis Mortgage programs Mortgage protection insurance Risk management Mutual Mortgage Insurance Fund Letter Report The Mutual Mortgage Insurance Fund has maintained an economic value of at least 2 percent of the Fund's insurance-in-force, as required by law. GAO's and the Department of Housing and Urban Development's (HUD) analysis show that the Fund had an economic value of $15.8 billion (3.20 percent) and $16.6 billion (3.66 percent), respectively. Given the economic value of the Fund and the state of the economy at the end of fiscal year 1999, a 2-percent capital ratio appears sufficient to withstand moderately severe economic downturns that could lead to worse-than-expected loan performance. However, under more severe economic conditions, the economic value of 2 percent of insurance-in-force would not be adequate. Because of the uncertainty and professional judgment associated with this type of economic analysis, GAO cautions against relying on one estimate or even a group of estimates to determine the adequacy of the Fund's reserves over the longer term. HUD could exercise several options under current legislative authority to reduce the capital ratio for the Fund. It is difficult, however, to reliably measure the impact of policy changes on the Fund's capital ratio and Federal Housing Administration borrowers without using tools designed to estimate the multiple impacts that policy changes often have. Nonetheless, any option that results in a reduction in the Fund's reserve, if not accompanied by a similar reduction in other government spending, would result in a budget surplus reduction or a deficit increase. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-460/html/GAOREPORTS-GAO-01-460.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-460/pdf/GAOREPORTS-GAO-01-460.pdf GAO-01-460 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-460 Letter Report GAO-01-460; Mortgage Financing: FHA's Fund Has Grown, but Options for; Funds management Mortgage loans Econometric modeling Economic analysis Mortgage programs Mortgage protection insurance Risk management Mutual Mortgage Insurance Fund Public Law 73-479 Public Law 101-508