Today, the Department of Housing and Urban Development (HUD) released its Federal Housing Administration (FHA) Annual Report to Congress on the financial status of FHA’s Mutual Mortgage Insurance Fund (MMI Fund) for fiscal year (FY) 2021. As detailed in the report:

  • The percentage of first-time homebuyers using FHA insurance reached a new high of 84.73 percent of total FHA forward mortgage purchase endorsements in FY 2021.
  • The share of mortgages insured by FHA to borrowers of color reached more than 42 percent of all FHA forward mortgage insurance endorsements in FY 2021.
  • The MMI Fund overall Capital Ratio for FY 2021 was 8.03 percent, an increase of 1.93 percentage points from FY 2020’s 6.10 percent.
  • FHA had insurance-in-force on single family mortgages with an unpaid principal balance of $1.2 trillion at the end of the fiscal year.
  • The performance of the forward book of business posted a stand-alone capital ratio of 7.99 percent, increasing by 1.68 percentage points from FY 2020’s 6.31 percent.
  • The Home Equity Conversion Mortgage (HECM) portfolio stand-alone capital ratio improved to positive (+) 6.08 percent in FY 2021 from negative (-) 0.78 percent in FY 2020.


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