FHA’s MMIF Capital Reserves Continue to Climb

Housing Finance
Contact: Curtis Milton
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 11.1% — an increase of 3.08 percentage points over fiscal year 2021. This is well above the congressionally mandated 2.0% capital ratio.

“Behind the bottom-line numbers are some 2 million individuals and families who were able to achieve homeownership or stay in their homes through hard times thanks to assistance from FHA,” said FHA Commissioner Julia Gordon.

Key highlights from FHA’s Fiscal Year 2022 MMI Fund Annual Report:

  • The overwhelming majority of FHA insurance endorsements, some 84% of its total forward purchase mortgage endorsements, were for mortgages made to first-time home buyers in fiscal year 2022.
  • In fiscal year 2022, FHA provided an insurance endorsement on mortgages for 284,807 self-identified individuals and families of color, 29% of its total forward mortgage insurance endorsements.
  • From the start of the pandemic through Sept. 30, 2022, more than one million borrowers with FHA-insured mortgages took advantage of loss mitigation home retention options or were in the process of obtaining loss mitigation through their mortgage servicer.
  • FHA’s forward mortgage portfolio achieved a stand-alone capital ratio of 10.47% as of Sept. 30, 2022, a 2.48 percentage point increase over fiscal year 2021.
  • The FHA Home Equity Conversion Mortgage (HECM) reverse mortgage portfolio’s stand-alone capital ratio stood at 22.77% as of Sept. 30, 2022, a 16.69-percentage point increase from fiscal year 2021, due in part to the permanent allocation to the HECM portfolio of $1.7 billion in appropriated funds received by FHA in fiscal year 2013.
  • The MMI Fund has $147.7 billion in MMI Capital, a $41.2 billion increase from fiscal year 2021.

Read HUD’s press release.

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