FHA Close to Rebuilding Insurance Fund Cushion

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The FHA is close to meeting the federally mandated minimum balance that it is required to maintain in its insurance fund.

The balance dipped so low last year that the FHA had to borrow $1.7 billion in taxpayer money to balance its books.

“The FHA’s financial situation is improving rapidly, and it should be able to significantly reduce its insurance premiums in the next year or two,” Mark Zandi, chief economist at Moody’s Analytics, said in a report.

Image via flickr/401(K) 2012

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