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CUOMO RELEASES INDEPENDENT AUDIT, ACTUARIAL REPORT THAT SHOW FHA'S FINANCIAL HEALTH CONTINUES TO IMPROVE
WASHINGTON - Housing Secretary Andrew Cuomo today released an independent audit by KPMG, Peat Marwick LLP and an actuarial report by Price Waterhouse that show the once-troubled Federal Housing Administration Insurance Fund is considerably stronger than it was before President Clinton took office.
The audit report notes: "FHA is changing for the better. We applaud management for its consistency in its efforts to make FHA relevant in, and responsive to, the marketplace."
"The independent audit and actuarial report are proof that our reinvention of FHA is paying dividends for American taxpayers, communities, and homeowners," Cuomo said. "The favorable audit and actuarial report are a vote of confidence in the FHA that strengthen our commitment to building strong, viable communities through increased homeownership. A healthy FHA Insurance Fund saves taxpayer dollars and ensures that HUD will continue to play a vital role in helping more hardworking families achieve the American Dream."
In addition, FHA continued to contribute to the rise in homeownership among first-time homebuyers, with 76 percent of new loans insured in 1997 going to new homeowners. Cuomo said that FHA's success and strong Fund are clear indications that the Department's proposal to raise the FHA loan limit to $227,150 would provide an even greater boost to the nation's homeownership rate.
The audit noted that the Department has made significant progress toward developing processes to effectively manage its current insured portfolio and inventory of notes and properties while continuing to serve the needs of the housing market; implemented an oversight tool that will help identify troubled and potentially troubled housing projects; and reached an agreement with the Department of Health and Human Services that will help increase FHA's ability to manage individual facilities in its $5 billion hospital portfolio.
These additional indicators cited in the audit attest to FHA's improved financial health:
By approving the audit, KPMG, Peat Marwick LLP has for the fifth consecutive year provided a "clean opinion" of FHA's financial statements, attesting to their confidence that the statements reflect accurately the agency's cash flows, financial position, and results of operation.
Content Archived: January 20, 2009