Testifying before the Senate Appropriations Committee this week, Secretary of Housing and Urban Development Ben Carson shared his Fiscal Year 2019 budgetary goals and priorities for HUD and the Federal Housing Administration.
His oral testimony and interactions with Senators covered many topics, including his support for FHA.
Secretary Carson referenced the HECM program once in his written testimony, where he stated: We also acted swiftly to improve the health of the Mutual Mortgage Insurance (MMI) Fund by placing FHA’s reverse mortgage program, the Home Equity Conversion Mortgage (HECM) program, on a more financially sound footing for new books of business. HECM has been a drain on the MMI Fund, depleting it of $11.7 billion since 2009. We are monitoring this program closely to determine what additional changes are warranted, while simultaneously expecting to face continued losses due to older, existing loans in the portfolio.