On Friday, Novermber 13, 2020, the Federal Housing Administration (FHA) released its annual report to Congress on the financial status of the FHA Mutual Mortgage Insurance Fund. This report is based upon the findings of an independent actuarial audit. For the sixth year in a row, the Fund is well above its statutory minimum of 2% capital reserve ratio at 6.10%, an increase of 1.26% from last year. More than 83% of its homebuyers were first-time buyers, an increase from 2019. The number of minority borrowers increased by roughly 30,000. NAR continues to urge FHA to reduce the premiums paid by buyers and eliminate the-of-loan mortgage insurance requirement. With the reserve ratio stronger than ever, FHA is now providing income to the US Treasury, and funding other non-housing related programs. FHA homebuyers should not be paying more than is needed to cover the risk to the taxpayer.
FHA Performing Well Above Requirement
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