U.S. housing agency bolsters its risk management
WASHINGTON - The U.S. Federal Housing Administration on Friday said it was appointing a risk officer and making changes in its credit policies to make sure its reserves against future losses stay above a minimum set by Congress.
The fund's reserves are sufficient to cover our future losses, so the FHA will not require taxpayer assistance or new congressional action, FHA Commissioner David H. Stevens said.
But he added that given the scope and importance of FHA's operations as a mortgage insurer, risk management and credit policy changes were needed to strengthen its reserves by making sure lenders take measures to protect themselves. (Reporting by Glenn Somerville; Editing by James Dalgleish)
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