NAR Responds to 12-Year High Capital Reserve Ratio in FHA Congressional Report

WASHINGTON (November 14, 2019) – National Association of Realtors® President Vince Malta issued the following statement after the Federal Housing Administration released its 2019 Annual Report to Congress on Thursday morning. The report notes that the FHA’s Mutual Mortgage Insurance Fund Capital Ratio was 4.84% in Fiscal Year 2019, marking the highest such level in a dozen years.

“Realtors® are pleased to see the strength of the MMIF Capital Ratio as it continues to meet the needs of first-time homebuyers, minorities and those underserved by the current market,” said Malta, broker at Malta & Co., Inc., in San Francisco, CA.

“However, the report also indicates current FHA buyers are paying premiums higher than necessary to cover taxpayer risks. As a result, NAR urges the FHA to consider reducing premiums and eliminating the life-of-loan policy, ensuring this critical market sector is not paying unnecessary fees to fund separate federal programs. Moving forward, we will work closely with the FHA to ensure the program facilitates access to mortgage credit while appropriately managing the risk to taxpayers.”

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries. 

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