MBA Statement on FHA’s Mutual Mortgage Insurance Fund
WASHINGTON, D.C. (November 13, 2020) - Comment of Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association, on the Annual Report regarding the status of the FHA Mutual Mortgage Insurance Fund (MMIF).
"Today's report reconfirms the important role that FHA plays in providing access to the housing market for qualified first-time, minority, and low- to moderate-income borrowers. It is gratifying to see the improved performance of both the forward and reverse mortgage books of business.
"HUD Secretary Carson, Deputy Secretary Montgomery, FHA Commissioner Wade, and the team at FHA are to be commended for continuing to improve their risk management strategies and enhance the stability of the MMIF. We look forward to working with HUD and FHA on further efforts to improve the program for borrowers and lenders alike while protecting taxpayers, especially with the ongoing challenges and uncertainty presented by the pandemic.
"As that picture becomes clearer, including how the 800,000 FHA borrowers currently in forbearance will exit, FHA should begin to re-examine premium levels, keeping in mind that maintaining prudent credit discipline enables FHA to play its countercyclical role supporting sustainable homeownership while expanding access for underserved communities."