RealEstateRama   -   Real Estate   -   Government   -   Nonprofit   -   Web


WASHINGTON – November 16, 2016 – (RealEstateRama) —  Earlier today, HUD released its 2016 Annual Report to Congress on the financial status of the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance Fund (MMIF). The report finds that the value of the MMIF, which funds FHA’s single-family homeownership and reverse mortgage loans, grew by $3.8 billion to $27.6 billion in fiscal year (FY) 2016, its fourth consecutive annual increase.


The MMIF’s capital ratio is at 2.32 percent, up from 2.07 percent in FY 2015 and above the statutorily mandated capital ratio of 2 percent. The capital ratio fell below the 2 percent threshold in in FY2009, due mainly to losses related to the economic downturn, and did not climb back to the minimum ratio until FY 2015. In FYs 2012 and 2013, due to losses caused by the financial crisis, the MMIF ran a negative balance. In September 2013, HUD was forced to request funding from the U.S. Treasury to keep it actuarially solvent.

The increase in the MMIF’s value was driven largely by an $18.3 billion jump in the value of its single-family homeownership loans. These gains were offset by losses in HUD’s reverse mortgage portfolio, which the report attributes largely to changes in the model FHA uses to project the performance of the reverse mortgages it insures. The performance of FHA’s reverse mortgage portfolio has historically been more volatile than its homeownership portfolio.

FHA endorsed 1.2 million homeownership loans in FY 2016, 880,000 of which financed home purchases (the rest were refinancings). 82 percent of FHA’s home purchase loans went to first-time home buyers.

According to data from NCSHA’s Factbook, around 60 percent of HFA single-family program loans funded through mortgage revenue bonds (MRBs) in 2014 were insured by FHA.


The National Council of State Housing Agencies (NCSHA) is a nonprofit, nonpartisan organization created by the nation's state Housing Finance Agencies (HFAs) more than 40 years ago to coordinate and leverage their federal advocacy efforts for affordable housing. What began as a small group of executive directors meeting annually has grown into a powerful national association and advocate for HFAs and affordable housing in Washington.

NCSHA represents its members in Washington before Congress, the Administration, and the several federal agencies concerned with housing, including the Department of Housing and Urban Development, the Department of Agriculture, and the Treasury, and with other advocates for affordable housing.


Phone: 202-624-7710

Previous articleMBA Statement Regarding FHA’s Annual Report to Congress
Next articleNAR Installs 2017 Officers