Following the release of the results of the most recent independent actuarial analysis, which indicate that the Mutual Mortgage Insurance Fund (MMIF) has reached its Congressionally mandated capital reserve ratio, Congresswoman Maxine Waters (D-CA), Ranking Member of the Committee on Financial Services, applauded FHA’s efforts to both strengthen the MMIF and expand access to homeownership for low-to-moderate income working families in the wake of the worst financial crisis in a generation.
In particular, the top Democrat lauded FHA’s recent decision to reduce premiums as yet another instance of FHA’s prudent approach to fulfilling its mission in helping more Americans achieve homeownership in the face of Republican opposition. She went on to urge U.S. Department of Housing and Urban Development Secretary Juliàn Castro to consider additional actions to continue to responsibly expand access to credit for creditworthy borrowers.
She released the following statement.
“I was very pleased to see the results of the independent actuarial analysis of the Federal Housing Administration’s Mutual Mortgage Insurance Fund announced today, which show that in the wake of the agency’s unprecedented work stabilizing our housing market during the financial crisis, the MMIF capital reserve ratio has rebounded to meet Congressional mandates, a full year earlier than projected. I applaud the FHA for making important changes over the past few years to reduce risk and improve loss mitigation—actions that have proven successful in strengthening the MMIF.
The report also makes clear that the agency’s decision to reduce premiums earlier this year– one that Democrats and advocates fought for – was a prudent and responsible step in the right direction. Republicans have opposed the FHA’s efforts to provide this critical relief to homeowners, which has stimulated a 42 percent increase in total volume, and expanded access to credit by serving 75,000 new borrowers with credit scores of 680 or below.
A healthy, viable FHA is critical to ensuring access to homeownership for qualified homebuyers. We must do everything possible to preserve this critical backstop for our housing market and support the FHA’s efforts to expand access to credit to more low-to-moderate income and minority families. That is why I am encouraging Secretary Castro to consider further actions to responsibly expand access to credit for more borrowers through the FHA while also maintaining a strong MMIF.”