The Housing and Insurance Subcommittee met for the sixth time last week, to examine the “Future of Housing in America.” The goal of the hearing was to discuss the fiscal health of the Federal Housing Administration (FHA), Mutual Mortgage Insurance Fund (MMIF), and the government reverse mortgage program, also known as “Home Equity Conversion Mortgage (HECM).
Subcommittee Chairman, Blaine Luetkemeyer (R-MO) had said, “FHA has suffered a case of mission creep, and the unfortunate truth is that the lack of sound underwriting and risk management puts both homebuyers and U.S. taxpayers at risk. While the most recent independent actuarial report showed signs of a modestly healthier agency, the bottom line is that FHA is still in a precarious state.”
She said, “The underlying problems at FHA, high volatility, and questionable underwriting, have existed for years and continue to pose a threat to all Americans. We need to continue to focus on commonsense reform and creation of a more stable housing market and housing finance system.”
In 2015, the FHA endorsed 1,116,232 single family home loans for an approximate total of $213 billion. $140 billion (66 percent) was used for the purchase of new and existing homes, while $73 billion (34 percent) was used to refinance existing mortgages.
Read more from the Housing and Insurance Subcommittee