Health of HECM Program Remains Positive In FY23

Health of HECM Program Remains Positive In FY23

For a third consecutive year, the Home Equity Conversion Mortgage portfolio had a positive economic value. That’s according to the Department of Housing and Urban Development’s 2023 Annual Report to Congress.

By the numbers:

  • The stand-alone capital ratio for the HECM portfolio stood at 16.72 percent in FY 2023, which is significantly higher than the congressionally mandated ratio of 2 percent.
  • FHA provided insurance endorsements for 32,963 HECMs in FY 2023, representing a Maximum Claim Amount of $16.16 billion.
  • After increasing every year since 2013, the average MCA per HECM endorsement decreased slightly to $490,396 in FY 2023 from last year’s record high of $498,210.