The Federal Housing Administration’s Mutual Mortgage Insurance Fund, Home Equity Conversion Mortgage program, and the Agency’s mission were the focal points in Principal Deputy Assistant Secretary Edward Golding’s testimony before the House Subcommittee on Housing and Insurance on Thursday. Golding said the rise of the MMI fund’s capital ratio above the 2 percent level was a result of, quote, FHA’s prudent policy changes and an ability to work with Congress to pass stabilizing legislation and quickly implement program changes over the course of several years. Close quote
Citing a 14 percent year-over-year spike in building permits and an 11 percent increase in housing starts over-the-year in 2015, Golding said stated that, quote, FHA’s position is strong and continues to improve. FHA remains committed to its mission to address underserved borrowers and mortgage markets. Close quote. Golding defended against the assertion that the FHA’s mission had drifted away from its original intention, noting that 82 percent of all FHA purchase originations in FY2015 were to first-time homebuyers.
Morgan Stanley is the latest firm to settle federal and state probes concerning quote, deceptive handling of mortgage-backed securities. This settlement, totaling 3 point 2 billion dollars, will be the fourth multi-billion dollar deal to be struck among the largest U.S. financial institutions for their MBS practices. The settlement was announced Thursday by federal and state authorities and Attorney General Eric T. Schneiderman.