April 13, 2021

MP Now News

Mortgage News

Fudge: FHA’s Mutual Mortgage Insurance Fund ‘Remains Resilient’

HUD buildingThe US Department of Housing and Urban Development (HUD) secretary Marcia Fudge released a statement on Tuesday quarterly report One year after the COVID-19 Health and Economic Crisis to Congress on FHA Programs for Single Family Mortgage Insurance Funds.

She says the health of the FHA’s mutual mortgage insurance fund has remained stable despite the financial challenges homeowners face with FHA-insured mortgages in 2020.

“The fund is worth more than $ 80 billion and is still well above the 2% required capital reserve,” said Fudge. “As a result of the pandemic, the FHA portfolio has seen higher levels of cumbersome credit and increased levels of forbearance credit. We continue to monitor mortgage performance developments in our portfolio, particularly in relation to homeowners facing financial problems as a result of the pandemic.”

She continued, “Tens of millions of families have been devastated by this pandemic, and housing has been a critical factor in people’s safety. The FHA insurance program provides essential access to credit and home ownership for low-income first time buyers – moderate families.” Income and color households that have historically been underserved. We are committed to equitable recovery and recognize the unprecedented moment and opportunity for HUD to lead the way. “

According to Fudge, in February the FHA took proactive political steps to help homeowners by extending foreclosure and eviction moratoriums through June 30, streamlining ways to mitigate COVID-19 losses, and allowing longer indulgence for the Providing aid to those struggling as a result of the pandemic for borrowers whose plans have expired

“We are already seeing the positive effects of the president Immediate action in the first few weeks of his reign to help the nation’s homeowners, but we have a lot more to do, “she said.” The American bailout plan recently enacted by President Biden contains vital and unprecedented housing resources, including nearly $ 10 billion Homeowner Assistance Fund to help homeowners with their mortgage and utility payments and avoid foreclosures and evictions. The actions we are taking now will help position the FHA program so that it can continue to serve its critical mission well into the future. “

She concluded, “Given the current FHA crime crisis and our duty to manage risk, as well as the overall health of the Fund, we have no short-term plans to change the premium rates on FHA mortgage insurance. We will continue to rigorously evaluate our strategy and be transparent about our number one priority it is to help families keep their homes and stay safe as we work toward their just recovery. “