On November 16, HUD announced that the Federal Housing Administration’s Mutual Mortgage Insurance Fund (MMI Fund) achieved a capital reserve ratio of 2.07% in FY15, surpassing the required 2%. In FY14, the MMI fund had a capital reserve ratio of just 0.41%, raising concerns about the fund’s health on Capitol Hill. FHA receipts are applied to annual appropriations for all of HUD’s other programs. When FHA receipts are down, as they were for the FY16 budget cycle by $1.1 billion, appropriators must fill the hole before HUD’s other programs can be funded.
According to HUD’s November 16 announcement, the economic health of the MMI Fund improved significantly in FY15 with a net value of nearly $24 billion, an increase of $19 billion over FY14.
HUD’s press release is at: http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2015/HUDNo_15-146