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FHA Financials Doing Much Better Than Expected
Monday, November 16, 2015
FHA's Mutual Mortgage Insurance Fund (MMIF) is back in the
money. Housing and Urban Development
Secretary Julian Castro told Congress today that the fund, which had declined into
insolvency at the crest of the mortgage crisis, is now back above its mandated
In his annual Report
to Congress, Castro said that the fund had improved its ratio by 1.66
percentage points from last year's actuarial result, increasing from 0.41
percent to 2.07 percent. FHA is required
to maintain a 2.0 percent ratio.
Reaching the goal happened a full year in advance of what independent
actuaries had projected.
In dollars the increase means that FHA has improved the net
worth of MMIF by $40 billion since the 2012 fiscal year and it now has a value
of $23.8 billion. In 2012 that capital
ratio stood at a negative 1.44 percent.
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