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.
…(read more)
