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White House Budget Forecasts Strong HECM Performance

White House Budget Forecasts Strong HECM Performance

The Trump Administration released appendices to its Fiscal Year 2026 proposed budget (page 479) this week that predicted strong economic numbers for the Home Equity Conversion Mortgage program for the next federal fiscal year that begins on October 1, 2025.

The budget forecasted the HECM books of business for fiscal years 2025 and 2026 to operate at a negative credit subsidy.

  • This means the HECM program will generate more receipts than it pays out in claims.

The budgetary numbers are a further indication that FHA’s reforms over the past few years are having the desired impact.

Why it matters: Since the HECM program is self-sustaining and doesn’t require an annual appropriation from Congress, the President’s budget provides a valuable bellwether on future HECM performance.

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Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.