FHA Home Mortgage Insurance Program Is Strong

The Fund's capital adequacy ratio is 3.75 percent, well above the Congressionally mandated minimum of 2.0 percent.FHA mortgage insurance encourages mortgage companies to make loans to borrowers who might not otherwise be able to meet conventional underwriting requirements, by protecting the mortgage company against loan default."Homeownership in America continues to set records," said Housing and Urban Development Secretary Mel Martinez. "FHA is the federal government's largest program to promote homeownership, and this report shows that we can continue helping thousands of families to realize the American dream."