Congresswoman Maxine Waters, Ranking Member of the Committee on Financial Services, released the following statement in response to the release of the Federal Housing Administration’s fiscal year 2013 Annual Report:

“Although the Federal Housing Administration is not completely out of the woods, today’s numbers show crucial improvements in its solvency and stability. FHA’s Mutual Mortgage Insurance Fund is heading in the right direction after a significant rebound. In total, FHA’s deficit was reduced by $15 billion over last year.

The Administration is following sound underwriting criteria – and it’s working. FHA has exceeded all expectations, and I am optimistic this progress will put it on sound financial footing for the long-term.

I am pleased this report shows FHA playing its vital countercyclical role. We must remember that during the worst of the crisis, when the private sector virtually fled the struggling market, FHA provided the liquidity that helped restore confidence. For this reason, it is important we have a healthy FHA, to support responsible homeownership for those who otherwise have limited access to credit, such as first time and low-income homebuyers. A stable and solvent FHA will ensure we have a strong backstop in the unfortunate event of another housing downturn.”

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