NRMLA Statement on FHA FY17 Annual Report to Congress

Today, the U.S. Department of Housing and Urban Development issued its annual report to Congress regarding the financial status of the Federal Housing Administration’s Mutual Mortgage Insurance Fund for Fiscal Year 2017.

NRMLA President and CEO Peter Bell issued the following statement in response to the report:

“NRMLA shares Secretary Carson’s optimism that recent policy changes will help sustain the HECM program, which more than a million senior households have used to supplement retirement savings and age in place.

“We are still studying FHA’s Annual Report to Congress to understand how the actuaries have modeled the projected valuation of the HECM portfolio. In the past, we’ve raised concerns that actuaries misunderstood the behavior of a HECM loan over time – including how a loan is typically serviced and the home’s value at time of disposition.

“Moving forward, we support an effort to study whether the HECM program should remain in the MMI Fund, or if it should be separated into its own mortgage insurance fund where it can be evaluated on its own. This is a conversation we will be having with policy makers at the agency and on Capitol Hill, and with industry stakeholders.”

About the National Reverse Mortgage Lenders Association
The National Reverse Mortgage Lenders Association (NRMLA) is the national voice for the industry and represents the professionals responsible for more than 90 percent of reverse mortgage transactions in the United States. All NRMLA member companies commit themselves to a Code of Ethics & Professional Responsibility. Learn more at www.nrmlaonline.org and NRMLA’s consumer education website www.reversemortgage.org

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Media Contact: Jenny Werwa, 202-939-1783, jwerwa@dworbell.com