- The decline in capital is being driven by losses from mortgage defaults.
- As lenders cut back on loans, the number of loans insured by the FHA has risen sharply in recent months.
- According to a recent audit, the economic value of the FHA's insurance fund was $12.9B as of Sept 30, which is a 39% decline from a year ago.
- The estimated value of the fund is about 3% of total loans insured by the FHA as of Sept 30 v 6.4% y/y.
- Federal law requires that the ratio be at least 2%.
- If the FHA runs short of money to pay claims, Congress would have to provide taxpayer funds to make up the difference.
- The share of new mortgages insured by the FHA rose to 26% in Q3 v 3% for the full year of 2007.

Americas Macro sector headlines

• Today 06:47am
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• Today 06:46am
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• Today 06:30am
  (CL) Chile Dec Trade balance: -$224M v $129.0Me- Total Exports: $3.63B v $4.35B prior - Total Imports: $3.85B v $3.67B prior - No revisions
  
• Today 06:17am
  Discover Dec US Spending monitor falls 3.1 points to 76.6
  
• Today 05:00am
  *(BR) BRAZIL DEC FGV INFLATION IGP: -0.44% V -0.17%E- No revisions