FHA’s MMIF Capital Reserves Continue to Climb
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.
Latest from NAHBNow
May 09, 2025
How CertainTeed One Precision Assemblies Accelerates Construction with Factory-Built PrecisionWith the demand for housing in today’s fast-paced construction environment, time is money — and quality is everything. That’s why more developers, general contractors, and home builders are turning to offsite construction solutions like CertainTeed One Precision Assemblies.
May 08, 2025
How an NAHB Student Chapter Alumnus Found His Residential Construction PassionLawrence Thompson III's eye for design and architecture led him to NAHB's Student Competition. Now the project manager is working a full-time job that fits his skills and passions.
Latest Economic News
May 09, 2025
Consumer Credit Slows in the First Quarter of 2025Consumer credit continued to rise in early 2025, but the pace of growth has slowed. Student loan balances rose year-over-year as borrowers resumed payments following the end of pandemic-era relief. However, growth remains modest.
May 08, 2025
Multifamily Developer Confidence Falls in the First QuarterMultifamily developers are starting the year in a cautious state, according to Q1 2025 results from the Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB). The MMS produces two separate indices.
May 07, 2025
Fed Remains on Pause with Rising UncertaintyThe Federal Reserve remained on pause with respect to rate cuts at the conclusion of its May meeting, maintaining the federal funds rate in the 4.25% to 4.5% range. Characterizing current market conditions, the central bank noted that the “unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid.” However, the Fed noted that “inflation remains somewhat elevated.”