HUD report to Congress reflects growth in several areas
The U.S. Department of Housing and Urban Development (HUD) yesterday released its annual report to Congress on the financial condition of the Federal Housing Administration’s Mutual Mortgage Insurance (MMI) Fund. The independent actuarial analysis shows the MMI Fund’s capital ratio grew by $3.8 billion and now stands at 2.32 percent — the second consecutive year since 2008 that FHA’s reserve ratio exceeded the congressionally required 2 percent threshold.
This is the fourth consecutive year of economic growth for the MMI Fund, allowing FHA to expand credit access to qualified borrowers even as the broader housing market continues to recover.
“FHA’s strong, sustained progress has helped fuel the housing market recovery over the past eight years,” said HUD Secretary Julian Castro. “Today’s report once again confirms that our steps to maintain a financially sound Fund are paying off, giving more American families the opportunity to afford a home of their own.”
Additional Report Findings:
- The MMI Fund’s capital ratio is above Congress’ two percent requirement for the second consecutive year, standing at 2.32 percent. This is a 12 percent increase in the capital ratio and marks the fourth consecutive year that the net worth of the Fund has improved.
- The economic value of the MMI Fund gained $3.8 billion in Fiscal Year 2016 and is now valued at $27.6 billion.
- The Single Family Forward Portfolio gained $18.3 billion in value, outperforming the actuary’s projections by $10.1 billion and achieved a capital ratio of 3.28 percent.