Health of HECM Program Improves in FY2022 The first piece of good news is the HECM portfolio’s financial health dramatically improved in fiscal year (FY) 2022, ending September 30 with a stand-alone capital ratio of 22.75 percent, compared with 6.08 percent the previous year. That’s according to the U.S. Department of Housing and Urban Development’s (HUD’s) 2022 Annual Report to Congress released November 15. Put another way, the HECM portfolio’s captial levels improved by $11.3 billion over the past year, from a positive $3.8 billion in FY2021 to a positive $15.1 billion in FY2022, driven primarily by strong home price appreciation levels nationwide. By comparison, the Federal Housing Administration’s (FHA’s) forward mortgage program had a capital ratio of 10.47 percent in FY2022, while the overall capital ratio for the Mutual Mortgage Insurance Fund (MMIF) was 11.11 percent. Congress requires MMIF to operate at a minimum capital ratio of two percent. “FHA’s Annual Report to Congress was welcome news and a clear-cut sign that programmatic reforms implemented by HUD to ensure the long-term sustainability of the HECM program continue to work, while also underscoring the strong leadership at FHA over the past two years,” said NRMLA President Steve Irwin. “That said, we continually look for ways to work with the department to further improve the HECM program. We believe there are opportunities to expand the accessibility of this program, enhance loss mitigation options and broaden HECM’s reach to assist underserved communities. We look forward to continuing our dialogue with HUD on these enhancements.” Following are a few other highlights from the annual report: Welcome to the newest section of Reverse Mortgage magazine— something we’re calling Hey, Members—that highlights important industry news and advocacy efforts with a personal touch. Hey, Members Darryl Hicks New Roundup of Issues and News for NRMLA Members By Darryl Hicks 8 REVERSE MORTGAGE / MARCH–APRIL 2023
RkJQdWJsaXNoZXIy MjQ1MzY1