Capital Reserve Ratio of FHA MMIF Dropped to 0.24 Percent, But Improvement Is Expected

摘要

The capital reserve ratio of the FHA Mutual Mortgage Insurance Fund (MMIF) dropped to 0.24 percent at the end of fiscal 2011 — well below the congressionally mandated minimum of 2 percent — though HUD's annual report to Congress sees improving conditions in which the ratio could exceed the threshold by 2014. "In the midst of a tough housing market, the FHA MMI Fund continues to be actuarially sound," said Carol Galante, acting assistant secretary for housing-FHA commissioner. "Because of the Obama Administration's strategy to protect the FHA fund — tightening of risk controls, increased premiums to stabilize near-term finances, and expanded loss mitigation assistance to avoid unnecessary claims — this past year's endorsements had the highest credit quality ever recorded and will yield historically high levels of net receipts in the years ahead."