MBA Statement on FHA's Annual Report to Congress
MBA's President and CEO Bob Broeksmit, CMB, issued the following statement after the Federal Housing Administration (FHA) released its annual report to Congress:
“Today’s report reflects a very healthy FHA program, with continued strengthening of the FHA Mutual Mortgage Insurance Fund, lower delinquency levels, and fewer borrowers in pandemic-related forbearance.
“Thanks to prudent risk management over the past several years by HUD and FHA lenders, the Fund’s capital reserve ratio is more than five times the statutory minimum reserve ratio and is well positioned to withstand an economic slowdown. We commend HUD and mortgage servicers for their ongoing work together during the pandemic to help homeowners successfully exit forbearance programs and stay in their homes.
“Given FHA’s healthy financial position, MBA continues to believe that HUD should make FHA loans more affordable by reducing mortgage insurance premiums as soon as budgetary opportunities allow. This move would help offset the impact of higher mortgage rates and improve the purchasing power for many prospective first-time homebuyers, minority buyers, and those with low and moderate incomes.
“With further slowing in the housing market expected in the months ahead, MBA will work with HUD and FHA leadership to ensure FHA can safely and sustainably perform its countercyclical role in the market, particularly for first-time homebuyers and underserved communities.”