Under a severe economic scenario, the Federal Housing Administration projects losses over a 30-year period that could reach as high as $115 billion, according to a letter sent by Rep. Darrell Issa, R-Calif., to Commissioner Carol Galante of the FHA.

This estimate was reported after a Congressional Committee reviewed numerous documents.

The Wall Street Journal's Nick Timiraos has more:

The forecast was significantly worse than the most severe estimate included in the government mortgage-insurance agency's independent actuarial review released last November. The FHA's outside actuaries modeled the analysis along the lines of the annual stress test employed by the Federal Reserve Board, which gauges how the nation's largest financial institutions would fare in the event of a significant economic shock. The FHA isn't required to use the Fed test.