MBA Comments on FHA's Annual Report to Congress
|Rob Van Raaphorst|
WASHINGTON, D.C. (November 14, 2019) - Robert D. Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement regarding the U.S. Department of Housing and Urban Development's (HUD) Annual Report to Congress Regarding the Financial Status of the FHA Mutual Mortgage Insurance Fund.
"MBA is pleased that FHA's MMI Fund continues to grow and strengthen. It is a clear sign that HUD is responsibly fulfilling its core mission of helping first-time homebuyers and other underserved borrowers attain affordable, sustainable credit without exposing taxpayers to unreasonable risk.
"The Fund's capital ratio, which is now more than twice the statutory minimum, indicates that HUD's policy changes over the last few years have had their intended effect of stabilizing the Fund and rebuilding reserves in order to prepare for any future downturns.
"We encourage HUD to closely monitor risks to the Fund, including the layering of risks that could contribute to future defaults, as well as oft-cited challenges associated with the HECM program. MBA urges HUD to continue to address 'extreme risk layering' quickly to protect the core of the program, while also exploring ways to ensure that premium levels for forward mortgages are not adversely impacted by the challenges in the HECM program. Together, these actions will allow HUD to set premiums that reflect the improved health of the Fund."