FACTBOX - FHA Measures To Improve Loans, Raise Capital

The FHA is also in need of additional capital after an actuarial report found the agency's secondary reserves have fallen below the required 2 percent, to 0.53 percent, as losses from borrower defaults rose. The housing agency insures nearly 30 percent of all purchase mortgages and 20 percent of refinanced loans, according to HUD Secretary Shaun Donovan. Proposed changes or new guidelines announced by Donovan on Dec. 2 include: -- HUD will increase "up front" cash required on a home purchase, giving the buyer more "skin-in-the-game."


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