The Federal Housing Administration’s Mutual Mortgage Insurance Fund gained $19 billion in economic value during Fiscal Year 2015, pushing its capital ratio past the 2 percent threshold required by Congress, according to HUD’s annual report to Congress released Monday morning. The independent actuarial analysis found the MMI’s capital ratio to be at 2 point 07 percent, attributing the soaring economic value of the portfolio during FY 2015 to strong actions taken to reduce risk, cutting losses, and improving recoveries.
FY2015 marked the third consecutive year of economic growth for the FHA’s MMI fund. The growth of the fund allows FHFA to expand credit access to qualified borrowers; the annual report noted a significant increase in loan volume during FY 2015 which FHA largely attributed to a reduction of 50 basis points to mortgage insurance premiums in January 2015. Brian Montgomery, vice chairman of the Collingwood Group and former FHA Commissioner and assistant HUD secretary, said the MMI Fund’s substantial growth was driven largely by a spike in the value of the FHA’s reverse mortgage portfolio.
Mortgage delinquency rates continued their trend of year-over-year double-digit declines in the third quarter of 2015, which contributed to the strong performance of consumer credit markets during Q3, according TransUnion’s Q3 2015 Industry Insights Report released Monday. At the consumer level, average revolving balances declined by 3 point 9 percent down to slightly less than 11 thousand dollars from Q3 2014 to Q3 2015. The rate of delinquent mortgages dropped by nearly 30 percent year-over-year in Q3 from 3 point 36 percent down to 2 point 40 percent.