MBA Statement Regarding FHA's Annual Report to Congress
|Rob Van Raaphorst|
WASHINGTON, D.C. (November 15, 2021) - Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association, issued the following statement today after the Federal Housing Administration (FHA) released its annual report to Congress.
"The continued strengthening of the FHA Mutual Mortgage Insurance Fund is a welcome development that highlights the strong financial stewardship of the Fund by HUD and other stakeholders, including lenders. A healthy FHA program is necessary to ensure the broad availability of sustainable mortgage credit to low- and moderate-income households, minority borrowers, first-time homebuyers, and other historically underserved communities.
"With the combined Fund capital ratio now at 8.03%, it is appropriate for HUD to expeditiously examine reductions in FHA mortgage insurance premiums, which have been at their current levels for nearly seven years. HUD should focus on pricing changes that have the greatest impact on affordability and sustainability for borrowers, such as reductions to the annual premiums, while being mindful of the current delinquency levels in the FHA portfolio and the elevated number of borrowers who remain in forbearance.
"MBA looks forward to our continued partnership with HUD as we pursue important reforms to strengthen further the FHA program - including upgrades to FHA's technology and platforms and modernization of FHA's servicing requirements."