The FHA’s finances are in a lot better shape than they were a year ago when an independent audit showed a $16.3 billion shortfall, but the latest review of the government mortgage insurer’s books raises the possibility that it could need another infusion of taxpayer help.

After receiving a $1.7 billion infusion from the Treasury Department in September — the first in the FHA’s history — the Federal Housing Administration still faces a $1.3 billion capital shortfall, Reuters reports. FHA Commissioner Carol Galante declined to comment on the prospect of another taxpayer cash infusion.

In an effort to give back market share to private mortgage insurers, FHA has been raising premiums, and the ceiling for FHA loans in priciest markets will be reduced to $625,500 on Jan. 1. Source:

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