MBA President and CEO David Stevens Comment on FHA Actuarial Report

WASHINGTON, D.C. (November 17, 2014) –  David H. Stevens, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement today regarding the release of the Federal Housing Administration’s (FHA) actuarial report on the Mutual Mortgage Insurance (MMI) Fund for single family programs (which differs from the GI/SRI fund that supports FHA’s multifamily programs):

“Today’s report shows a continued improvement in economic value of the MMI Fund, with the fund having improved by $21 billion in the last two years. This trend is good news for taxpayers and the program, as almost all of the vital metrics, including delinquencies, foreclosures, and recoveries on property disposition, continue to improve.

"Maintaining this trend will require FHA to continue its ongoing work to improve transparency and certainty around its loan quality assessment methodology, as well as to re-examine mortgage insurance premiums, both the amount and the structure. Premiums are currently at an all time high, and FHA needs to find the right balance so it can meet its mission and further grow its reserves by sustainably increasing volumes without being adversely selected should only the highest risk borrowers be willing to pay the high premiums.”