Modeling the Budgetary Costs of FHA's Single Family Mortgage Insurance: Working Paper 2014-05

Francesca Castelli, Damien Moore, Gabriel Ehrlich and Jeffrey Perry

No 45711, Working Papers from Congressional Budget Office

Abstract: This paper presents the simulation model that the Congressional Budget Office (CBO) uses to project the budgetary costs of the Federal Housing Administration's (FHA's) single-family mortgage insurance program. CBO simulates defaults, recoveries, and prepayments on cohorts of mortgages insured by FHA with key parameters estimated from a dataset of FHA-insured mortgages. Those simulations are used to estimate the loan guarantees' subsidy rates, which are the lifetime cost of FHA's insurance claim payments minus fees, expressed as a percentage of the

JEL-codes: G00 H50 (search for similar items in EconPapers)
Date: 2014-09-11
New Economics Papers: this item is included in nep-cmp, nep-ias and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:cbo:wpaper:45711

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