FHA’s MMIF Capital Reserves Continue to Climb in Fiscal 2021

Housing Finance
Published
Contact: Curtis Milton
[email protected]
Director, Single Family Finance
(202) 266-8597

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.

Read HUD’s press release.

For more information, contact Curtis Milton at 800-368-5242 x8597.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Membership | Advocacy

Jul 02, 2025

From Disaster Relief to Challenging Gas Bans, HBAs are Making a Difference

Nearly two dozen HBAs received Association Excellence Awards for outstanding contributions they made on behalf of their members and communities in 2024.

Advocacy

Jul 01, 2025

One Big Beautiful Bill Act Will Spur Economic Growth

NAHB Chairman Buddy Hughes issued the following statement after the Senate passed the One Big Beautiful Bill Act.

View all

Latest Economic News

Economics

Jul 02, 2025

Two or More Story Home Starts Rebound in 2024

Over half of new single-family homes built in 2024 were two or more stories, according the recent release of the Census Bureau’s Survey of Construction (SOC). After declining in 2023, the share of homes started with two or more stories increased again in 2024, continuing the upward trend in place since 2020.

Economics

Jul 01, 2025

May Private Residential Construction Spending Dips

Private residential construction spending fell by 0.5% in May, marking the fifth straight month of decreases. This drop was primarily driven by reduced spending on single-family construction. Compared to a year ago, total spending was down 6.7%, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.

Economics

Jul 01, 2025

Flat Job Openings for Construction

The count of open, unfilled positions in the construction industry held steady amid a slowdown for housing, per the May Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).