Mortgage Insurance Fund Circling the Drain – Better Loans to Blame?


Posted To: MND NewsWire

FHA’s Mortgage Insurance Fund (MIF) lost ground this past year, which is bad news for those hoping for a cut in its fees. The Department of Housing and Urban Development (HUD) released results of the statutorily required independent actuarial analysis of the MIF on Tuesday which showed the balance of the fund declined by $2 billion during the 2017 fiscal year. The analysis, conducted by Pinnacle Actuarial Associates, put the fund’s capital reserves at $25.6 billion at the end of September. That equates to 2.09 percent of the $1.23 trillion outstanding balance of the mortgages FHA guarantees. By law, MIF must maintain a minimum of 2.0 percent as a reserve against loans that default. The fund had a balance equal to 2.35 percent of its guaranteed loans at the end of the 2016 fiscal year. The fund…(read more)

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