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
Aug 01, 2025
Meet at Home with Your Members of CongressNAHB members across the nation can build on the success of the June Legislative Conference by meeting with their lawmakers in their home districts in August to discuss key issues that affect the home building industry.
Jul 31, 2025
How Home Builders Beat the Labor Crunch with This Fast Financing PlanStruggling to secure labor can force builders to make tough decisions: Do you delay a project? Sacrifice profits? Or turn down new opportunities? But smart builders don’t just react — they adapt their financing strategy to meet labor challenges head-on.
Latest Economic News
Jul 31, 2025
Personal Income Rises 0.3% in JunePersonal income increased by 0.3% in June, following a 0.4% dip in May, according to the latest data from the Bureau of Economic Analysis. The gains in personal income were largely driven by higher wages and social benefits.
Jul 31, 2025
Housing Share of GDP: Second Quarter 2025Housing’s share of the economy registered 16.3% in the second quarter of 2025, according to the advance estimate of GDP produced by the Bureau of Economic Analysis. This reading is unchanged from a revised level of 16.3% in the first quarter and is the same as the share one year ago.
Jul 30, 2025
Fed Remains on Pause AgainAt the conclusion of its July meeting, the Federal Reserve’s monetary policy committee once again held the federal funds rate constant at a top rate of 4.5%. However, two members of the committee dissented from the decision (Fed Board Governors Waller and Bowman), the largest number of dissenting votes since 1993.