FHA’s MMIF Capital Reserves Continue to Climb in Fiscal 2021
The Federal Housing Administration (FHA) today released its annual report to Congress that shows the agency’s capital reserve ratio of its Mutual Mortgage Insurance Fund (MMI Fund) ended the fiscal year at 8.03% — an increase of 1.93 percentage points over fiscal 2020. This is well above the congressionally mandated 2.0% capital ratio.
“This year, our Administration took unprecedented steps to deliver relief to those devastated by the pandemic. Managing the strong fiscal health and performance of the FHA program is a top priority, and I am encouraged to see the MMI Fund remain resilient through the events of the past year,” said HUD Secretary Marcia Fudge.
Key highlights from FHA’s Fiscal Year 2021 MMI Fund Annual Report:
- As of Sept. 30, 2021, FHA had active insurance on more than 7.8 million single-family forward and reverse mortgages, with a total unpaid principal balance of more than $1.2 trillion.
- The share of first-time home buyers using FHA insurance reached a new high of 84.7% of total FHA forward mortgage purchase endorsements in fiscal 2021. Similarly, the share of mortgages insured by FHA to minority borrowers reached almost 42% of all FHA forward mortgage insurance endorsements in fiscal 2021.
- FHA’s forward mortgage portfolio achieved solid performance with a stand-alone capital ratio of 7.99% as of Sept. 30, an increase of 1.68 percentage points over last year.
- The Home Equity Conversion Mortgage (HECM) reverse mortgage portfolio saw a significant improvement in its valuation with a stand-alone capital ratio of 6.08% as of Sept. 30, compared to a negative 0.78% capital ratio in 2020.
For more information, contact Curtis Milton at 800-368-5242 x8597.
Latest from NAHBNow
Design | IBS
Jan 09, 2026
From Décor to Resiliency, IBS Design Central Covers It AllAt the 2026 NAHB International Builders’ Show® (IBS) in Orlando Fla., there will be education sessions centered on design. Design Central will offer engaging presentations led by some of the industry’s top professionals, covering everything from décor to sustainability. Here are the Design Central presentations, all taking place at the Orange County Convention Center (OCCC).
IBS
Jan 09, 2026
Final Touches Underway at The New American Home 2026Watching a new home come to life in the final stages of construction is a satisfying experience—not just for the owners, but for the builder as well. That feeling is only amplified when the home is a focal point of the International Builders’ Show (IBS)—the industry’s largest trade show.
Latest Economic News
Economics
Jan 09, 2026
Townhouse Construction Share Gains ContinueAccording to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the third quarter of 2025, single-family attached starts totaled 46,000. Over the last four quarters, townhouse construction starts totaled a strong 179,000 homes, which is 1% higher than the prior four-quarter period (177,000). Townhouses made almost 20% all of single-family housing starts for the third quarter of the year.
Economics
Jan 09, 2026
Job Growth Slowed as 2025 EndedJob growth continued to slow at the end of the year, reinforcing signs of a cooling labor market. Nonfarm payrolls increased by 50,000 jobs in December, while the unemployment rate edged down slightly to 4.4%.
Economics
Jan 09, 2026
Residential Construction Softens Amid Ongoing Housing Market HeadwindsThe latest residential housing market report, delayed by the federal government shutdown last fall, indicates that builders have faced significant headwinds in recent months. Elevated mortgage rates earlier in the year have restrained buyer demand and weighed on home building activity, alongside persistently high construction costs.