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
Jul 11, 2025
Maine HBA Brings Real-World Training to State’s Future BuildersRecognizing an aging workforce and a critical need for new talent, the Association has partnered with the Sanford Regional Technical Center (SRTC) to prepare the next generation of skilled tradespeople. Through HBA-led instruction, high-school students are building homes from the ground up and gaining real-world experience.
Jul 10, 2025
What to Know About Expiring Energy Tax CreditsPresident Trump recently signed the One Big Beautiful Bill Act (OBBBA) into law, which significantly accelerates the termination date for federal energy tax incentives. Builders and remodelers using the credits should be aware of the new expiration dates and where necessary, consult with their tax professional for additional guidance.
Latest Economic News
Jul 11, 2025
Shrinking Lots: Spec Building New NormThe share of smaller lots remained record high in 2024, with two out of three new single-family detached homes sold occupying lots under 9,000 square feet (1/5 of an acre or less).
Jul 10, 2025
Remodeling Market Sentiment Dips in Second QuarterIn the second quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 59, down four points compared to the previous quarter.
Jul 09, 2025
Mortgage Applications Picked Up in June as Rates EasedMortgage application activity picked up in June, supported by a slight decline in interest rates. The Mortgage Bankers Association’s (MBA) Market Composite Index, which tracks mortgage application volume, rose 5.4% from May on a seasonally adjusted basis. Compared to June 2024, total applications were up 21.1%.