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Institute Calls to Separate HECM in FHA MMI Fund
Numbers, statistics and figures are the backbone of federal agencies who must account for their fiscal status each year. In the wake of the housing crash housing agencies such as FHA have come under increasing pressure and scrutiny. The recent report shows that FHA’s Mutual Mortgage Insurance (MMI) fund increased $19 billion dollars in it’s overall economic value with $8 billion being attributed to improvement in the HECM portion of the fund. The Urban Institute is pushing for the HECM fund to be separated from the general fund.
First some context. The Urban institute was founded in 1968 to understand the problems facing America ranging from poverty, tax policies and other public issues providing objective analysis. Urban suggests that the commingling of the HECM fund with the general fund is providing a distorted and misleading picture of FHA’s financial status. Further they assert the most recent ‘windfall’ may not be all that it is cracked up to be. As we stated two weeks ago on this show the fund’s improvement was not attributed dollar for dollar to increased premium collections but primarily from an improved economic forecast.
Download a transcript of this episode here.
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