HUD Inspector General Audit Says Recent FHA Financial Outlook May Be Too Rosy, Cites Risk of Old Technology
December 10, 2009
Independent auditors hired by the HUD Inspector General say the FHA’s financial statements for 2009 and outlook for the future may be overly optimistic, a charge that officials at the Department of Housing and Urban Development strongly disagreed with. FHA’s process for estimating its mortgage guaranty liabilities is based on econometric models that rely heavily on historic claim payment...