UPDATE: FHA Reserves Will be Below Minimum.

UPDATE 1: HUD press release HERE announces new changes to deal with reserve levels.

FHA has issued FIVE related mortgagee letters (in MS Word) on the same day to help get in front of this issue:
Revised Streamline Refinance Transactions
Strengthening Counterparty Risk Management
Appraisal Validity Periods
Appraisal Portability
Appraiser Independence
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More developments will occur later today I am sure, but this AM's WaPo story is HERE. (Graphic to left is from WaPo story).

FHA Commissioner quote from story:

We are absolutely not going to Congress and asking for money for FHA," he said. "We're not going to need a special subsidy or special funding of any kind.He stressed that the agency plans to take other steps that will help beef up the reserves.

Originally created and posted on the Oregon Housing Blog.