Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge recently offered a statement regarding the agency’s Federal Housing Administration (FHA) Single-Family Mutual Mortgage Insurance Fund Programs quarterly report.
With regard to the analysis forwarded to Congress, Fudge noted HUD has an obligation to provide detailed information on the composition, credit quality, and financial position of the program, adding she sought to discuss the state of the FHA insurance program, as well as the health of the Mutual Mortgage Insurance Fund a year after the COVID-19 pandemic.
“The health of FHA’s Mutual Mortgage Insurance Fund has remained resilient despite the financial challenges faced by homeowners with FHA-insured mortgages in 2020,” Fudge said. “The fund stands at more than $80 billion and remains well above the 2 percent minimum capital reserve required. Through the pandemic, the FHA portfolio has experienced increased levels of seriously delinquent loans and a heightened level of loans in forbearance. We continue to monitor mortgage performance trends within our portfolio, particularly related to those homeowners who are struggling financially because of the pandemic.”
Fudge indicated the FHA insurance program provides access to credit and homeownership for first-time homebuyers, low-to-moderate income families, and households of color who have been historically underserved. She added that HUD is committed to an equitable recovery and recognizes the opportunity for HUD to lead the way.
“We will continue to rigorously evaluate our strategy and work transparently with Congress,” Fudge concluded. “Our number one priority is helping families keep their homes and remain safe as we work toward an equitable recovery.”