The Federal Housing Administration (FHFA) has released its Fiscal Year 2025 report on the state of the Mutual Mortgage Insurance Fund (MMI Fund), a $1.6 trillion single-family mortgage portfolio.
According to the report, the MMI Fund’s Capital Ratio as of Sept. 30 was 11.47%, unchanged from FY 2024 and over five times the required minimum of 2%. FY 2025 was the 11th straight year with the MMI Fund exceeding its statutory threshold.
Furthermore, the report stated the MMI Fund’s economic net worth rose by roughly $16 billion in FY 2025, reaching a new total of $188.87 billion. FHA endorsed insurance for more than 876,000 single-family mortgages during this period, with 83% of that share supporting first-time homebuyers. FHA’s forward mortgage insurance share encompassed approximately 19% of originations, and the agency also insured over 28,000 Home Equity Conversion Mortgages (HECMs).
Mortgage Bankers Association President and CEO Bob Broeksmit welcomed the report.
“Strong underwriting standards and prudent risk and loss mitigation practices across HUD, FHA lenders, and servicers continue to underpin a sound FHA program, marked by robust capital reserves, said Broeksmit. ““MBA shares the Trump administration’s goal of making homeownership more affordable and appreciates FHA’s efforts this year to streamline its single-family financing programs, cut red tape, and remove housing construction barriers.”
Broeksmit added his organization will “review the report in greater detail to assess whether any policy changes are warranted to improve affordability and access to homeownership in 2026, including a potential reduction in FHA’s annual mortgage insurance premiums. Any such changes should be calibrated responsibly and informed by a careful evaluation of the program and the economic factors behind the rising serious delinquency rate to ensure the program remains safe, sound, and sustainable.”
