The Office of Management and Budget (OMB) is considering changes to the estimates the Federal Housing Administration (FHA) is using for house values over the next several years, which could lead to a possible increase in mortgage insurance premiums FHA charges on single-family loans.

Sources also note that losses on FHA loans with seller-funded downpayment assistance continue to rise. A re-estimate by OMB could show "massive losses," which might require a congressional appropriation or higher premiums, said a former Department of Housing and Urban Development (HUD) official.

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