MBA Statement on FHA’s Annual Report to Congress

WASHINGTON, D.C. (November 15, 2024) — MBA’s President and CEO Bob Broeksmit, CMB, issued the following statement regarding today’s Federal Housing Administration (FHA) release of its annual report to Congress:

“Quality underwriting and effective risk management and loss mitigation efforts by HUD, FHA lenders, and mortgage servicers continue to support a healthy FHA program that has a high capital reserve ratio and low delinquency levels.

“With mortgage rates well above 6 percent, MBA and its members remain very concerned about the constrained affordability conditions for qualified first-time homebuyers and low- and moderate-income households.

“At 11.47%, the Mutual Mortgage Insurance Fund is more than five times the statutory minimum reserve ratio. While it is sensible to have a healthy cushion above the 2% minimum reserve, qualified borrowers should not be charged higher mortgage insurance premiums (MIP) than necessary. In addition to pursuing more program enhancements to boost housing supply and affordability, such as this year’s 203(k) program updates, borrowers would see meaningful payment relief from FHA eliminating its life of loan premium requirement and making another reasonable cut to the MIP. 

“MBA will review the report in greater detail and looks forward to working with the Trump administration and Congress in 2025 on policies and program enhancements to increase housing supply and lower costs for consumers while protecting taxpayers.”