On Wednesday, the House Financial Services Committee will hold a hearing titled "Oversight of the Federal Housing Administration" at 2 p.m. The Honorable Brian D. Montgomery, Assistant Secretary for Housing, Federal Housing Commissioner, U.S. Department of Housing and Urban Development will be the sole witness at this hearing.
At the hearing, the members of the House committee will ask questions on the performance of the Federal Housing Administration (FHA) during the year and what it plans for the future through discussions on its Annual Report that was submitted to the Congress in November.
According to the house committee memorandum, On November 15, 2018, the FHA released its FY 2018 Annual Report to Congress on the economic condition of the agency’s Mutual Mortgage Insurance Fund (MMIF). The MMIF supports FHA’s single-family mortgage insurance programs, including all forward purchase and refinance transactions, as well as mortgages insured under the Home Equity Conversion Mortgage (HECM) or reverse mortgage program originated since FY 2009.
The MMIF’s FY 2018 Capital Ratio is 2.76 percent, a 0.58 percentage point increase over the restated FY 2017 Capital Ratio of 2.18 percent. The Economic Net Worth of the MMIF is $34.86 billion, an increase of over $8.12 billion from FY 2017. The fiscal condition of FHA’s forward mortgage portfolio is materially better than the HECM portfolio. Excluding HECMs, FHA’s FY 2018 forward mortgages have a capital ratio of 3.93 percent and a positive Economic Net Worth of $46.8 billion. By contrast, the 2018 HECM portfolio has a negative capital ratio of 18.83 percent and a negative economic net worth of $13.63 billion.
Here's what else is happening in the week ahead:
- Census Bureau Construction Spending Report, Monday, 10 a.m. EST
- CoreLogic Home Price Insight Report, Tuesday, 9 a.m. EST
- MBA Mortgage Applications, Wednesday, 7 a.m. EST
- Fed Beige Book, Wednesday, 2 p.m. EST
- Ellie Mae Millennial Tracker, Wednesday, 9 a.m. EST
- Freddie Mac Primary Mortgage Market Survey, Thursday, 9 a.m. EST
- Census Bureau Employment Situation Report, Friday, 8:30 a.m. EST