WASHINGTON – Dec. 16, 2013 – The U.S. Department of Housing and Urban Development (HUD) released its annual report to Congress on the financial condition of the Federal Housing Administration (FHA) Mutual Mortgage Insurance (MMI) Fund.
The independent report shows that FHA’s Mutual Mortgage Insurance Fund (MMIF) gained $15 billion dollars in value over the last year. It now stands at negative $1.3 billion with a current capital ratio of negative 0.11 percent.
While FHA still isn’t back to its mandated working level, it should get there. The actuary anticipates that the Fund will return to the required two percent capital reserve ratio in 2015, or two years earlier than projected last year. Meanwhile, FHA maintains over $48 billion in liquid assets to pay expected claims.
“The (report) shows that FHA is on a positive trajectory to rebuild its capital reserve fund and meet the congressionally required two percent excess reserve amount by 2015,” says National Association of Realtors® (NAR) President Steve Brown.
“In light of this report, NAR believes that Congress should not dramatically change the FHA or redefine its purpose,” Brown says. “We will continue our work with FHA to help make the dream of homeownership a reality for millions more Americans.”
© 2013 Florida Realtors®