The overall capital ratio of the Mutual Mortgage Insurance Fund increased by three percentage points in the 2022 fiscal year to finish at 11.11%, that is well over the statutory minimum of 2%, according to the Federal Housing Administration's annual report to Congress released today. The fund currently has $147.7 billion in MMI capital-a $41.2 billion increase from fiscal year 2022. A stress test conducted on the MMI Fund resulted in a capital ratio of 6.31%.
\”These results suggest that FHA, like a countercyclical force in the economy, has accumulated enough capital recently so that it need not further bolster reserves in preparation for a potential recession, as major depositories did recently,\” based on the report. \”FHA is already well-positioned to manage economic headwinds that may lie ahead.\”
The report also demonstrated that the proportion of FHA-endorsed mortgages via depository institutions increased for the first time in additional than the usual decade in fiscal year 2022. Depository institutions taken into account 10.5% of FHA endorsements this season, up from 8.9% this past year and also the first increase since 2010, when their share was 43%. Nondepository lenders made up 89.4% of FHA endorsement originations in 2022.
Roughly 84% of FHA's total forward purchase mortgage endorsements-or 678,675 mortgages-were for mortgages designed to first-time homebuyers in 2022, based on the report. The rate of significant delinquencies-mortgages 90 or even more days past due-was 4.77%, down from more than 11% throughout the height from the COVID-19 pandemic.
