Thursday, November 5, 2009

This is Never Good News

The much delayed audit of the Federal Housing Administration (FHA) has been delayed again:
A much-anticipated audit of the Federal Housing Administration was abruptly postponed just before it was supposed to be made public, after questions arose about its accuracy.

The auditor, Integrated Financial Engineering, said it notified the F.H.A. late Tuesday that its computer models were creating unexplained inconsistencies. A news conference scheduled for Wednesday morning was canceled.
The audit calculates whether or not there are solvency issues under various economic scenarios.

The fact that concerns over these models led to another delay on the release of the audit is concerning, to say the least, particularly since, "The delinquency rate on F.H.A. loans was 14 percent in the second quarter."

No comments:

Post a Comment