In a recent press release, the U.S. Department of Housing and Urban Development (HUD) announced the release of their quarterly report to Congress regarding the status of the Federal Housing Administration (FHA) Single-Family Mutual Mortgage Insurance Fund Programs.
The new HUD Secretary, Marcia L. Fudge, confirmed the overall stability of the fund which “stands at more than $80 billion and remains well above the 2% minimum capital reserve required.” However, the report clearly shows the financial challenges homeowners have been facing due to the pandemic. During the fourth quarter of 2020, the Serious delinquency rate (SDQ) climbed to almost 12% and continued to rise into the new year.
The HUD press release noted that the number one priority of the FHA is “helping families keep their home and remain safe” as the economy begins to recover. In addition to steps like extending the foreclosure moratorium through June 30, 2021, Secretary Fudge confirmed that there are currently no plans to change the FHA mortgage insurance premium pricing. For now, the FHA plans to continue monitoring performance trends, and looking at ways to managing risks as mitigation options expire for more and more homeowners affected by the pandemic.
