The National Affordable Housing Act requires an independent actuarial analysis of the economic net worth and soundness of the FHA's Mutual Mortgage Insurance Fund. This actuarial report presents the findings with respect to the required analysis for fiscal year 2003 using data as of March 31, 2003.

Sections

	I. Executive Summary
	II. The Value of the MMIF Under Alternative Economic Scenarios
	III. Characteristics of the FY2003 Book of Business
	IV. Changes to Model Assumptions
	V. Additional Model Testing at the Loan Level
	VI. Considerations and Limitations

Appendices

	A. Conditional Claim and Prepayment Rate Models
	B. Demand Model
	C. Claim Severity Model
	D. Cash Flow Model
	E. Data Transformation
	F. Economic Forecast
	G. Delta Analysis for Claim and Prepayment Models
	H. Claim and Prepayment Rate Exhibits
	I. Generalized Linear Model