As housing prices recover, short sales have become an increasingly popular escape route for indebted homeowners. But the future of short sales depends on a tax cut extension from Congress that may or may not come, and realtors argue that housing prices haven't rebounded enough for many homeowners to afford their debt forgiveness as a tax.
FHA, which guaranteed nearly 40 percent of new home loans over the past year, can survive without taxpayer funds, according to an audit.
The Federal Housing Authority's (FHA) measures are expected to help replenish the agency's depleted capital reserves and quell rising delinquencies. The move to increase premiums and tighten loan standards could have an impact on low-income borrowers.