MBA Statement on FHA's Annual Report to Congress
|Rob Van Raaphorst|
|(202) 557- 2799
WASHINGTON, D.C. (November 15, 2017) - David H. Stevens, CMB, President & CEO of the Mortgage Bankers Association, issued the following statement regarding FHA's Annual Report to Congress.
"FHA and its leadership should be commended for their continued commitment to improving the value of the FHA single-family MMI fund. The drop in the capital reserve ratio, primarily due to the extreme volatility of the HECM program, demonstrates that the Trump Administration was wise to reverse the MIP reduction made in the last days of the previous Administration. Had the reduction remained in place, the value of the MMI fund would have more than likely dropped below the legal statutory 2% threshold.
"Today's report further reinforces the need for policymakers and Congress to seriously consider whether or not the HECM program should be included in the MMI fund going forward. Removing it would strengthen the MMI fund, give a more accurate look at the health of FHA's forward book of business and could allow for the consideration of a mortgage insurance premium reduction."