WASHINGTON, D.C. (November 15, 2023) — Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement regarding today’s Federal Housing Administration (FHA) release of its annual report to Congress:
“The FHA program is healthy, with a high capital reserve ratio and delinquency levels that are now lower than before the pandemic. We applaud the tremendous efforts of HUD, FHA lenders, and mortgage servicers in managing risk, originating quality loans, and helping distressed homeowners exit forbearance and stay in their homes.
“The Fund’s capital reserve ratio is far above the statutory minimum reserve ratio and is well positioned to withstand any economic slowdown.
“FHA’s move to lower mortgage insurance premiums (MIP) earlier this year improved the purchasing power for many homebuyers, but affordability challenges persist because of low housing inventory and high mortgage rates and home prices. Further action on the MIP, such as eliminating the life of loan premium requirement, should be considered to provide payment relief to FHA borrowers.
“We remain engaged with the Biden administration and Congress and will continue to advocate for sustainable policies and programs that boost supply for affordable homeownership and rental housing opportunities, such as comprehensive updates to the 203(k) home rehabilitation program and a MIP reduction for the similarly strong FHA multifamily lending programs.”