FHA recently released its 2018 Annual Report to Congress regarding the economic condition of its Mutual Mortgage Insurance Fund (MMI Fund). The health of the fund is of particular importance because it supports FHA’s single-family mortgage insurance programs, including its forward mortgage purchase and refinance transactions, and its HECM-insured mortgages (i.e., its reverse mortgage program).
This year’s report, like the previous year’s report, separately identifies standalone capital ratios for FHA’s forward and reverse mortgage portfolios, as well as portfolio stress-testing based on historical scenarios.
Among the many issues and statistics identified, the Annual Report included the following regarding Fiscal Year 2018:
In discussing FHA’s reverse mortgage portfolio, the Annual Report noted that FHA has implemented a number of changes to strengthen its HECM program and will continue to monitor its performance.
HUD’s press release is available here.
The 2018 Annual Report is available here.