Annual Report to Congress for fiscal year 2023 highlights impact of insurance premium reduction, assistance for approximately two million struggling homeowners, and a well-capitalized Mutual Mortgage Insurance Fund.
The Federal Housing Administration (FHA) published today its annual report to Congress describing the work of its Single Family mortgage insurance programs in fiscal year 2023 and the performance of the FHA Mutual Mortgage Insurance Fund (MMI Fund) which supports that work. Despite challenges in the housing market, FHA facilitated access to mortgage credit for more than 765,000 homebuyers and homeowners, including more than 33,000 seniors who obtained a Home Equity Conversion Mortgage (HECM) during the fiscal year.
“Purchasing a home is the cornerstone of the American dream, yet it remains far too out-of-reach for many Americans,” said HUD Secretary Marcia L. Fudge. “I am pleased to announce that in 2023, we helped hundreds of thousands of people enter the housing market, enabling entirely new futures for them and their families.”
Additionally, the annual report shows that FHA maintains a strong, well-capitalized insurance fund. As of September 30, 2023, the MMI Fund maintained an overall capital ratio of 10.51 percent. This represents a slight decrease of only 0.6 percentage points from the previous year. The total capital in the MMI Fund actually increased by $3.6 billion, reaching over $145 billion by the end of the fiscal year, compared to fiscal year 2022. Additionally, FHA’s serious delinquency rate, the percentage of mortgages in its portfolio that are 90 or more days delinquent, was 3.93 percent at the end of fiscal year 2023, similar to the rate prior to the onset of the COVID-19 pandemic.
“I’m proud that FHA delivered real solutions this past fiscal year, including a reduction in our mortgage insurance premiums and policy and programmatic changes that expanded access to affordable mortgage credit,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. “Fiscal year 2023 was a difficult year for homebuyers and the professionals who serve them, and FHA’s exceptional team worked hard to support underserved borrowers and communities as well as our business partners in the mortgage and real estate sector.”
The report highlights FHA’s important role in serving populations not adequately served by the private mortgage market. More than 82 percent of FHA purchase mortgage insurance endorsements in fiscal year 2023 went to first-time homebuyers. And as in past years, the share of FHA’s total endorsements that went to borrowers of color significantly exceeded that of other market participants. According to the most recent data available, the percentage of FHA’s volume comprised of mortgages made to Black borrowers was triple the rate of the rest of the market, and for Hispanic borrowers it was double. Finally, according to calendar year 2022 data, close to half of all rural homebuyers who obtained low down-payment mortgages obtained mortgages insured by FHA.
The Annual Report to Congress Regarding the Financial Status of the Federal Housing Administration Mutual Mortgage Insurance Fund for Fiscal Year 2023, and the fiscal year 2023 actuarial reviews of the Forward and Home Equity Conversion Mortgage portfolios are available on HUD.gov.
For highlights from the 2023 report, including key data points, findings, and statistics, see the fact sheet.