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FHA Will Keep Mortgage Insurance Fund Rates Stable
Wednesday, March 31, 2021
The newly installed Secretary of the Department of Housing and Urban
Development (HUD) released her first quarterly report on the agency to Congress
on Tuesday. A key point regarded the Federal Housing Administration's Single
Family Mutual Mortgage Insurance (MMI) Fund. Secretary Marcia L. Fudge said the
fund has remained resilient despite the financial challenges faced by
homeowners with FHA-insured mortgages in 2020 and the agency has no near-term
plans to change MMI's current premium pricing. She explained that the fund
stands at more than $80 billion, still well above the 2 percent minimum capital
reserve required. Through the pandemic, the FHA portfolio has experienced increased levels of
seriously delinquent loans and a heightened level of loans in forbearance, but
Fudge said HUD has continued to monitor mortgage performance trends within the
FHA portfolio, particularly related to those homeowners who are struggling
financially because of the pandemic.
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