Download or read book Mortgage Financing Financial Condition of FHA s Mutual Mortgage Insurance Fund written by Mathew J. Scire and published by DIANE Publishing. This book was released on 2011-04 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: FHA has helped millions of families purchase homes through its single-family mortgage insurance programs. FHA insures almost all of its single-family mortgages under the Fund, which is reviewed from both an actuarial and budgetary perspective each year. This statement discusses: (1) how estimates of the Fund¿s capital ratio have changed in recent years and the budgetary implications of changes in the Fund¿s financial condition; (2) how FHA and its actuarial review contractor evaluate the financial condition of the Fund; (3) the steps FHA has taken to improve the financial condition of the Fund; and (4) changes in the performance and characteristics of FHA-insured mortgages in recent years. Illustrations. This is a print on demand report.

Download or read book Mortgage Financing written by United States Government Accountability Office and published by Createspace Independent Publishing Platform. This book was released on 2018-05-12 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mortgage Financing: Financial Condition of FHA's Mutual Mortgage Insurance Fund

Download or read book Financial Condition of the FHA s Mutual Mortgage Insurance Fund written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Housing and Urban Affairs and published by . This book was released on 1992 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Fha Single family Mortgage Insurance written by Congressional Research Service and published by CreateSpace. This book was released on 2015-01-26 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Federal Housing Administration (FHA) insures private lenders against losses on home mortgages made to borrowers that meet certain eligibility criteria. If the borrower defaults—that is, does not repay the mortgage as promised—and the home goes to foreclosure, FHA pays the lender the remaining principal amount owed. By insuring lenders against the possibility of borrower default, FHA is intended to expand access to mortgage credit to households who might not otherwise be able to obtain a mortgage at an affordable interest rate or at all, such as those with small down payments. When an FHA-insured mortgage goes to foreclosure, the lender files a claim with FHA for the remaining amount owed on the mortgage. Claims on FHA-insured home mortgages are paid out of the Mutual Mortgage Insurance Fund (MMI Fund), which is funded through fees paid by borrowers (called premiums), rather than through appropriations. However, like all federal credit programs covered by the Federal Credit Reform Act of 1990, FHA can draw on permanent and indefinite budget authority with the U.S. Treasury to cover unanticipated increases in the cost of the loans that it insures, if necessary, without additional congressional action. Each year, as part of the annual budget process, the expected costs of mortgages insured in past years are re-estimated to take into account updated performance and economic assumptions. If the anticipated costs of insured mortgages have increased, then FHA must transfer funds from a secondary reserve account into its primary reserve account to cover the amount of the increase in the anticipated cost of insured loans. If there are not enough funds in the secondary reserve account, then the MMI Fund is required to take funds from Treasury using its permanent and indefinite budget authority in order to make the required transfer. Separately from the budget re-estimates, FHA is required by law to obtain an independent actuarial review of the MMI Fund each year. This review provides a view of the MMI Fund's financial status by estimating the MMI Fund's economic value—that is, the amount of funds that the MMI Fund currently has on hand plus the net present value of all of the expected future cash flows on the mortgages that are currently insured under the MMI Fund. The actuarial review also determines whether the MMI Fund is in compliance with a statutory requirement to maintain a capital ratio of at least 2%. The capital ratio is the economic value of the MMI Fund divided by the total dollar amount of mortgages insured under the MMI Fund. In recent years, increased foreclosure rates, as well as economic factors such as falling house prices, have contributed to an increase in expected losses on FHA-insured loans. This increase in expected losses has put pressure on the MMI Fund and reduced the amount of resources that FHA has on hand to pay for additional, unexpected future losses. The capital ratio fell below 2% in FY2009, and has remained below 2% since then, turning negative in FY2012 and FY2013 but becoming positive again in FY2014. At the end of FY2013, FHA announced that it would need $1.7 billion from Treasury to cover an increase in anticipated costs of loan guarantees. This marked the first time that FHA has needed funds from Treasury to cover an increase in expected future losses in its single-family mortgage program. The FY2014 annual actuarial review of the MMI Fund released in November 2014 showed that, according to current estimates, the economic value of the MMI Fund is positive $4.8 billion and the capital ratio is currently 0.41%. This suggests that the MMI Fund would have about $4.8 billion remaining after realizing all of its expected future cash flows on currently insured mortgages, and it represents an increase of $6.1 billion from FY2013 when the economic value was estimated to be negative $1.3 billion.

Download or read book The Financial Health of the Federal Housing Administration s Single Family Mutual Mortgage Insurance Fund written by United States. Congress. House. Committee on Financial Services. Subcommittee on Housing and Community Opportunity and published by . This book was released on 2001 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Federal Housing Administration s Mutual Mortgage Insurance Fund and Other FHA Issues written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Housing and Community Development and published by . This book was released on 1992 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Actuarial Soundness of the Federal Housing Administration s Mutual Mortgage Insurance Fund written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Housing and Community Development and published by . This book was released on 1994 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: Publisher Description

Download or read book Review of Federal Housing Administration The financial status of FHA mortgage insurance funds written by United States. Congress. House. Committee on Government Operations. Legal and Monetary Affairs Subcommittee and published by . This book was released on 1973 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Mortgage financing written by Mathew J. Scirè and published by . This book was released on 2010 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Federal Housing Administration s Mutual Mortgage Insurance Fund written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Housing and Community Development and published by . This book was released on 1994 with total page 338 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Mortgage Financing written by Thomas J. McCool and published by DIANE Publishing. This book was released on 2001 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: According to HUD, the economic value of the Mutual Mortgage Insur. Fund grew by about $5 billion in 1999, reaching its highest level in 20 years. This report: estimates the value of the Fund at the end of FY'99, given expected econ. conditions, & compares this est. to the est. of the value of the Fund reported by HUD; determines the extent to which a 2% capital ratio (CR) would allow the Fund to withstand worse-than-expected loan performance due to economic & other factors; & describes options for adjusting the size of the Fund if the estimated CR is different than the amt. needed, & describes the impact that these options might have on the FUND, FHA mortgagors, & the Fed. budget. Tables.

Download or read book Mortgage Financing written by U S Government Accountability Office (G and published by BiblioGov. This book was released on 2013-06 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pursuant to a congressional request, GAO reviewed the actuarial soundness of the Federal Housing Administration's (FHA) Mutual Mortgage Insurance Fund, focusing on the: (1) fund's economic net worth as of the end of fiscal years 1992 and 1993; and (2) econometric and cash flow modeling approach used to estimate the fund's net worth. GAO found that: (1) the fund's economic value has improved in recent years and the fund is accumulating sufficient capital reserves to be actuarially sound under the law; (2) at the end of fiscal year (FY) 1993, the fund had an estimated economic net worth of $4.9 billion and a capital ratio of 1.83 percent under the baseline GAO scenario; (3) at the end of fiscal year 1992, the fund's estimated net worth was $600 million and its capital ratio was 0.21 percent; (4) although legislative and other changes to the FHA single-family mortgage insurance program helped restore the fund's financial health, favorable economic conditions in 1993 were primarily responsible for the improvement; (5) the fund fell below the mandated capital ratio of 1.25 percent in FY 1992, but exceeded the ratio in FY 1993; (6) econometric and cash flow models of the FHA single-family mortgage program were used to estimate the economic net worth of FHA loans; (7) the econometric model estimated the historical relationships between the probability of loan foreclosures and prepayments and key explanatory factors such as the borrower's equity and interest rates; (8) the cash flow model measured five primary sources and uses of cash for loans originated in fiscal years 1975 through 1993; and (9) the fund's ability to maintain its financial health and to meet and maintain mandated reserve levels depends on many economic and program-related factors.

Download or read book The FHA Single Family Mortgage Insurance Program written by Katie Jones and published by Createspace Independent Pub. This book was released on 2013-01-06 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Federal Housing Administration (FHA) insures home mortgages made by private lenders against the possibility of borrower default. If the borrower does not repay the mortgage, FHA pays the lender the remaining principal amount owed. By insuring lenders against the possibility of borrower default, FHA is intended to expand access to mortgage credit to households, such as those with smaller down payments or below-average credit histories, who might not otherwise be able to obtain a mortgage at an affordable interest rate or at all. FHA also traditionally plays a countercyclical role in the mortgage market. In other words, it generally insures more mortgages during periods when lenders and private mortgage insurers tighten their lending standards and reduce activity in response to market conditions, and it generally insures fewer mortgages at times when lenders and private mortgage insurers make mortgage credit more easily available. When an FHA-insured mortgage goes to foreclosure, the lender files a claim with FHA for the remaining amount owed on the mortgage. Claims on FHA-insured loans have traditionally been paid out of an account, known as the Mutual Mortgage Insurance Fund (MMI Fund), that is funded through fees paid by borrowers, rather than through appropriations. However, if FHA were ever unable to pay claims that it owed, it can draw on permanent and indefinite budget authority with the U.S. Treasury to pay those claims without additional congressional action. In recent years, increased default and foreclosure rates, as well as economic factors such as falling house prices, have contributed to an increase in expected losses on FHA-insured loans. This increase in expected losses has put pressure on the MMI Fund and reduced the amount of resources that FHA has on hand to pay for additional, unexpected future losses. This has led to concern that FHA may need to draw on its permanent and indefinite budget authority for funds from Treasury to hold in reserve to pay for these higher expected future losses, or, eventually, to pay insurance claims. An annual actuarial review of the MMI Fund released in November 2012 showed that, according to current estimates, FHA does not currently have enough funds on hand to cover all of its expected future losses on the loans that it currently insures. The results of this actuarial review heightened concerns that FHA could need funds from Treasury. However, whether FHA actually needs to draw funds from Treasury would be determined as part of the annual budget process, not by the actuarial review. FHA faces an inherent tension between protecting its financial health and fulfilling its mission of expanding access to mortgage credit. In addition, the share of mortgages insured by FHA has increased in the past several years as the availability of mortgage credit has tightened, further contributing to this tension. FHA has recently proposed or implemented a number of changes to its single-family mortgage insurance program that are intended to minimize risk to the MMI Fund while still allowing FHA to support the mortgage market and expand access to affordable mortgages. These changes have included increasing the fees that it charges to borrowers for insurance, modifying its underwriting criteria, and taking steps to increase oversight of lenders who make FHA-insured loans. While many of these changes were made administratively by FHA, some involved congressional action. Congress has also weighed additional changes to FHA's programs, and has considered additional legislation aimed at protecting the financial health of the MMI Fund. An example of such a bill is the FHA Emergency Fiscal Solvency Act of 2012 (H.R. 4264), which passed the House of Representatives during the 112th Congress. An identical bill (S. 3678) has been introduced in the Senate.

Download or read book Financial Health of the Federal Housing Administration FHA Insurance Fund written by United States. Congress. House. Committee on the Budget. Task Force on Urgent Fiscal Issues and published by . This book was released on 1989 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Mortgage Financing written by United States. General Accounting Office and published by . This book was released on 2001 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Challenges Facing the FHA s Single family Insurance Fund written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Housing and Transportation and published by . This book was released on 2000 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Fha Single family Mortgage Insurance written by Congressional Research Service and published by CreateSpace. This book was released on 2015-01-29 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Federal Housing Administration (FHA), an agency of the Department of Housing and Urban Development (HUD), insures private mortgage lenders against losses on eligible mortgages. If a borrower defaults on an FHA-insured mortgage, FHA will repay the lender the remaining amount owed. FHA insurance is intended to encourage lenders to offer mortgages to households who might otherwise have difficulty obtaining a loan at an affordable interest rate, such as households with small down payments. Borrowers pay fees, called premiums, in exchange for the insurance, and these fees are supposed to pay for the costs of any mortgage defaults. In recent years, increasing foreclosure rates and falling house prices have strained FHA's single-family mortgage insurance fund, the Mutual Mortgage Insurance Fund (MMI Fund). At the end of FY2013, FHA received $1.7 billion from Treasury to ensure that it had sufficient funds to cover all of its expected future losses on the mortgages that it was currently insuring. This was the first time that FHA had ever required funds from Treasury for this purpose for its single-family program. In response to concerns about the financial condition of the MMI Fund, FHA has taken a number of steps in recent years to attempt to improve its financial position. These changes have included increasing the fees that it charges to borrowers, adjusting its underwriting standards, and making changes to the way that it manages delinquent mortgages and foreclosed properties. FHA has also requested additional authorities from Congress, such as improving its ability to hold FHA-approved lenders accountable for the mortgages they submit for FHA insurance. These authorities have been included in legislation that Congress has considered but have not been enacted to date. Congress has also been considering additional reforms to FHA. Proposed reforms include increasing the amount of capital that FHA is required to hold in reserve to pay for unexpected increases in future losses and specifying actions that FHA must take if its capital reserves fall below certain thresholds. Some of these proposed additional reforms have been included in several stand-alone bills that have been introduced in recent Congresses, including H.R. 1145 and S. 1376 in the 113th Congress. Additionally, reforms to FHA are being considered in the context of broader reforms to the housing finance system. One housing finance reform bill in the 113th Congress, the Protecting American Taxpayers and Homeowners (PATH) Act (H.R. 2767), would have made more far-reaching changes to FHA than those that have been included in other bills. These changes would have included limiting FHA-insured mortgages to only low- and moderate-income borrowers and first-time homebuyers in most circumstances, reducing the share of a mortgage that FHA can insure, and requiring greater risk-sharing with the private sector. The PATH Act would also have removed FHA from HUD and made it an independent agency.