WASHINGTON, D.C. – November 17, 2015 – (RealEstateRama) — Financial Services Committee Chairman Jeb Hensarling (R-TX) made the following comments today about the financial condition of the Federal Housing Administration’s Mutual Mortgage Insurance (MMI) Fund. An independent actuarial analysis released today shows the MMI Fund’s capital ratio stands at 2.07 percent—the first time since 2008 that FHA’s reserve ratio meets the legally required threshold of 2 percent.
“After breaking the law for seven years, it’s good to see that the FHA is finally in compliance but it’s sad that merely following the law is what passes for ‘victory’ in the Obama administration. This is no time for hollow victory laps from administration officials. Hardworking taxpayers remain exposed to more than $1 trillion in FHA insured mortgage credit risk, and the FHA capital reserve remains woefully insufficient. In fact, were it not for the FHA’s volatile reverse mortgage program, the FHA single-family loan portfolio would still be below the legally required 2 percent threshold. Instead of complementing a robust private mortgage market, the FHA continues to crowd out private lenders. That’s no way to create the sustainable housing finance system that Americans deserve,” said Chairman Hensarling.