For a fifth 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 2025 Annual Report to Congress released on December 31.
Key Takeaways:
-
The stand-alone capital ratio for the HECM portfolio stood at 24.06 percent in FY 2025 and 10.95 percent for the forward mortgage portfolio, both significantly higher than the congressionally mandated ratio of 2 percent.
-
The average HECM Maximum Claim Amount increased to $531,350 in FY 2025 from $504,016 in 2024.
-
The average age at endorsement for HECM borrowers has increased gradually over the past decade, from just under age 72 in FY 2013 to just above age 75 in FY 2025.
-
The share of HECM refinances increased this past year, rising from 8.87 percent of total HECM endorsements in FY 2024 to 12.26 percent in FY 2025.
-
For HECMs endorsed in FY 2025, the average PL was 45.17 percent of the MCA, up from 44.36 percent in FY 2024. Slightly lower interest rates contributed to this minor increase.
-
Insurance claims submitted to FHA increased from $5.47 billion in FY 2024 to $6.03 billion in FY 2025. Most claims were Type 2, which result from loans being assigned to FHA at 98 percent MCA.
