FHA’s MMIF Capital Reserves Hold Firm in Fiscal 2023

The Federal Housing Administration (FHA) today released its annual report to Congress that shows the agency’s capital reserve ratio of its Mutual Mortgage Insurance Fund (MMI Fund) ended the fiscal year (Sept. 30, 2023) at 10.51%, a slight decrease of only 0.6 percentage points from the previous year. This is well above the congressionally mandated 2% capital ratio.

The total capital in the MMI Fund actually increased by $3.6 billion, reaching over $145 billion by the end of the fiscal year, compared to fiscal year 2022. Additionally, FHA’s serious delinquency rate, the percentage of mortgages in its portfolio that are 90 or more days delinquent, was 3.93% at the end of fiscal year 2023, similar to the rate prior to the onset of the COVID-19 pandemic.

In a news release, HUD said that FHA facilitated access to mortgage credit for more than 765,000 home buyers and home owners, including more than 33,000 seniors who obtained a Home Equity Conversion Mortgage (HECM) during the fiscal year.

The MMI Fund report notes that more than 82% of FHA purchase mortgage insurance endorsements in fiscal year 2023 went to first-time home buyers.

According to the most recent data available, the percentage of FHA’s volume comprising mortgages made to Black borrowers was triple the rate of the rest of the market, and for Hispanic borrowers, it was double.

Finally, according to calendar year 2022 data, close to half of all rural home buyers who obtained low down-payment mortgages obtained mortgages insured by FHA.

For highlights from the 2023 report, including key data points, findings, and statistics, see the fact sheet.