Housing and Urban Development Secretary Shaun Donovan testified on the financial health of the Federal Housing Administration (FHA). The agency had a $16 billion deficit due to mortgage lending activity during the financial crisis. Secretary Donovan said he could not guarantee the agency would not need to draw money from the Treasury Department at the end of 2013. He also outlined a number of policy changes being enacted or contemplated that would affect millions of Americans seeking mortgages through FHA.