In response to a request from Chairman Hensarling, the CBO has prepared a report on options for managing FHA’s exposure to risk.  FHA reform is sure to be part of this year’s housing-finance package in the House, accelerated in part by CBO’s new finding that FHA risk-sharing along VA lines scores well, regardless of whether the government or a lender takes the first-loss piece.  This scoring approach thus also has significant impact on the direction of future GSE risk shares.

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