The head of the Federal Housing Administration (FHA) declined on Wednesday to say whether the agency would need to tap taxpayer funds to replenish its reserve accounts.

"If the fund has not gone negative and continues to remain positive it will be thanks to the quick actions of this committee and Congress giving us more authority and actions of this administration," Commissioner David Stevens said in response to a question at a hearing of the House of Representatives Financial Services Committee.
An independent actuarial study on the FHA’s financial health is expected this fall.

Stevens was repeatedly questioned about whether the agency would need a "bailout" from taxpayers.

The FHA is "running on its own. It is financially sound. It is below the minimum capital requirement, so we need to increase that capital but it is not (now) requiring a bailout. We will know more when the actuarial study is complete," Stevens told lawmakers.

The FHA has capital reserves equal to just 0.53 percent of the value of the thousands of outstanding home mortgages it insures, well below the 2 percent required by law, according to an independent actuarial study released late last year.

Congress this year gave the FHA the authority to nearly triple the annual fees it charges borrowers. The FHA plans to begin more modest increases on the annual premium beginning next month.

The FHA, which does not make loans directly, guarantees loans made to borrowers who meet certain restrictions. (Reuters)