FHA Commissioner Carol Galante sent a letter to the Senate Banking Committee on September 27 requesting $1.7 billion in additional mandatory funding for the Federal Housing Administration (FHA) in order to remain in compliance with regulations governing minimum reserve fund levels for the Mutual Mortgage Insurance (MMI) Fund. This is the first such request in the history of the program.In its FY14 budget proposal, the Administration estimated it would need $943 million of mandatory funding for the FHA’s reserve in order to maintain the required levels. These additional funds were necessary because FHA had experienced greater losses than expected from Home Equity Conversion Mortgages loans, also known as reverse mortgages. The FHA currently holds an excess of $30 billion in reserves and HUD reports that the program is in good financial condition otherwise. The MMI fund also generates revenue for the federal government and in FY14 HUD applied an anticipated $14.5 billion in MMI and other reserves to offset HUD’s budget request. View HUD’s FHA letter at: http://bit.ly/1bmb3vR