twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.



FHA Earns Passing Grade

Capital reserve ratio exceeds 2%

Nov. 16, 2015

By Mortgage Daily staff



For the first time in years, the Federal Housing Administration's Mutual Mortgage Insurance Fund has met congressionally mandated capital requirements.

Three years ago, the economic value of capital reserves at the MMI Fund was a negative $16.3 billion -- putting the capital reserve ratio at 1.44 percent.

That left the government-owned mortgage insurer with a capital reserve ratio that was far short of the minimum two percent ratio mandated by Congress.

On Monday, the Department of Housing and Urban Development reported in its annual report to Congress that the MMI Fund's capital reserve ratio has reached 2.07 percent.

It's the first time since 2008 that the ratio has exceeded the congressionally required 2 percent threshold.

The economic value of the MMI Fund has reached nearly $24 billion for fiscal-year 2015, up $19 billion from fiscal-year 2014.

"This is the third 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," HUD said. "FHA's annual report also notes a significant increase in loan volume during FY 2015, due largely to a reduction in annual mortgage insurance premium prices announced in January."

HUD noted that the reduction in M.I. premiums lifted total volume 42 percent. Purchase financing endorsements were up 27 percent.

In addition, the cut in premiums reportedly enabled an additional 75,000 new borrowers with credit scores of 680 or less to gain access to home financing.

"Improvements in the value of the MMI fund over the past few years are the result of a series of policy decisions designed to rebuild the fund and protect taxpayers and the role FHA plays in the housing system, particularly for low and moderate income Americans and first-time homebuyers," Mortgage Bankers Association President and Chief Executive Officer David H. Stevens commented in a written statement. "FHA and its leadership should be commended for protecting the program, as well as the American taxpayer."

Stevens -- who served as Federal Housing Commissioner in the Obama administration -- noted, however, that home-equity conversion mortgages are having a disproportionate impact on capital reserves. He explained that while only 10 percent of the overall FHA book of business consists of HECMs, reverse mortgages have been responsible for a large part of the value swing in recent years. He said policymakers might want to examine this disparity more closely.

Less optimistic about the improved financial condition were private mortgage insurers who compete with FHA.

"We welcome the progress made, but caution against a false sense of security from today's report," U.S. Mortgage Insurers President and Executive Director Lindsey Johnson said in a written statement. "It is a reminder of continued taxpayer exposure to more than $1 trillion in FHA insured mortgage credit risk. The M.I. industry and FHA should serve as complementary ways to promote sustainable homeownership. But to do that, FHA still needs to become more financially resilient in line with the rest of the financial system, and remain focused on its core mission of serving underserved communities."

Lindsey highlighted the disparity between his group's members, which have been subjected to increased capital requirements as a result of the Federal Housing Finance Agency's updated private mortgage insurance eligibility requirements, while FHA has not seen any increase in its own capital requirements.

"Accordingly, USMI is calling for reforms to the FHA capital standard," the statement said. "USMI encourages policymakers to increase the fund's minimum capital ratio to reduce the chances of a taxpayer bailout in future market downturns, and to stress test those levels to ensure the fund's financial position is more consistent with the risks assumed."


read HUD's annual report to Congress

FHA profile

next story

back to current headlines


Mortgage Insurance News | M.I. Directory | M.I. Statistics
News about mortgage insurance issuance, defaults and litigation
.


www.mortgagebranchmanagerjobs.com

Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.



Reverse Mortgage News
Home equity conversion mortgages, HECM lenders and HECM reports. Reverse mortgage lending issues, analysis and compliance.

www.mortgagebranchmanagerjobs.com
Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders