FHA Mortgage Reserve Ratio Falls to 0.53%, Lowest in History

The Federal Housing Administration, the government agency that insures at least one of every five U.S. single-family mortgages, said its reserves fell to the lowest level in history after a record drop in home prices. The loan insurance ratio, which measures reserves to the amount of loans insured, dropped to 0.53 percent in the year ended in September, from 3 percent in fiscal 2008 and 6.4 percent in 2007, according to an annual actuarial review released by the agency today.

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