FHA tells Congress: Mortgage insurance claims are down; home prices a concern

"That audit found that as the FHA's loan volume expanded, its default rate rose and the excess cash it set aside to deal with unexpected losses eroded to dangerously low levels as of Sept. 30. The auditors concluded taxpayers would be on the hook for losses if worst-case scenarios played out -- a first for the agency, which has always used fees it charges borrowers to pay lenders for losses."