Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

HUD: FHA’S 2021 Annual Report Shows Increase in Capital Reserves; DTI Remains Elevated

by
November 15, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Berenberg downgrades FedEx, cuts price target on rising inflation risks

JPMorgan says investors are too worried about Apple, sees 40% rebound before year-end

by Calculated Risk on 11/15/2021 04:49:00 PM

From HUD: Capital ratio remains above statutory minimum benefitting from rapid home price appreciation and a steady recovery from COVID-19 pandemic delinquencies.

The U.S. Department of Housing and Urban Development (HUD) today released its fiscal year (FY) 2021 report to Congress on the financial health of the Federal Housing Administration (FHA) Mutual Mortgage Insurance Fund. In addition to its emphasis on delivering relief options to homeowners financially impacted by the COVID-19 pandemic, FHA continued to deliver on its mission of enabling homeownership for first-time and low- and moderate-income, and households of color.

The MMI Fund supports FHA’s Single Family mortgage insurance programs, including all forward mortgage purchase and refinance transactions, as well as mortgages insured under the Home Equity Conversion Mortgage (HECM) reverse mortgage program. The report illustrates that the MMI Fund increased its overall Capital Ratio, ending the fiscal year at 8.03 percent, an increase of 1.93 percentage points over the previous fiscal year. For the first time since 2015, the HECM reverse mortgage program has a strong positive ratio, primarily due to strong national home price appreciation. As the recovery from the pandemic continues, the Fund remains well positioned to withstand future economic events and endure the outcomes from the pandemic induced delinquencies that remain in forbearance or are seriously delinquent.

“The strength of the fund is a promising sign and solidifies the important role FHA fulfills in making homeownership a reality for first-time homebuyers and those with lower incomes.” said U.S. Department of Housing and Urban Development Secretary Marcia L. Fudge. “This year, our Administration took unprecedented steps to deliver relief to those devastated by the pandemic. Managing the strong fiscal health and performance of the FHA program is a top priority, and I am encouraged to see the MMI Fund remain resilient through the events of the past year. Looking ahead, we will ensure FHA is well positioned to provide broad and equitable access to homeownership, especially for those who have been historically underserved in the mortgage market.”

From the report: Credit scores are decent, but DTI ratio remains elevated.

Click on graph for larger image.

Exhibit III-8 above illustrates the distribution of credit scores for borrowers obtaining FHA
endorsements. The share of endorsements with credit scores between 620 and 679 increased
slightly in from 53.13 percent in FY 2020 to 57.16 percent in FY 2021. The share of endorsements
on mortgages with credit scores of 720 or higher decreased from 14.69 percent in FY 2020 to
13.33 percent in FY 2021.

The average Debt-to-Income (DTI) ratio for borrowers with FHA-insured purchase mortgages
increased slightly, from 43.08 percent in FY 2020 to 43.18 percent in FY 2021, as illustrated in
Exhibit III-9 above. The percentage of borrowers with DTI ratios of 50 percent or greater in FY
2021 was at 23.71 percent, a decline from 24.20 percent in FY 2020 and a sign of slightly
improving economic circumstances for FHA’s traditional borrowers.
ShareTweetPin

Related Posts

Berenberg downgrades FedEx, cuts price target on rising inflation risks

by
July 1, 2022
0

Shares of FedEx are a "show me story" until the company can prove it can deliver on their turn-around strategy,...

JPMorgan says investors are too worried about Apple, sees 40% rebound before year-end

by
July 1, 2022
0

Apple may be dealing with lower consumer demand and growing FX challenges, but JPMorgan is "not as worried" about the...

The Dow just booked its worst first half since 1962. What history says about the path ahead.

by
July 1, 2022
0

This bear has claws. A bear market that began on the first trading day of 2022 drove down the S&P...

Apple Ex-Corporate Law Chief Admits Years of Insider Trading

by
July 1, 2022
0

TipRanks Future Winners? 3 Stock Giants Jim Cramer Bets On If there’s one common theme connecting the market’s experts, it’s...

JetBlue extends tender offer date for Spirit Airlines to July 29

by
July 1, 2022
0

A photo of a Spirit Airlines jet coming in for a landing in Las Vegas on 25 May 2020. JetBlue...

Next Post

Biden signs $1 trillion bipartisan infrastructure bill into law, unlocking funds for public works

Stocks close flat to start the week ahead of big retail earnings

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net