FHA’s insured portfolio includes approximately 7.81 million single-family forward mortgages and 287,000 HECMs, reflecting its substantial role in the housing market. About 82.64% of FHA-insured purchase loans went to first-time homebuyers, and 31.66% of FHA loans were made to borrowers of color, a slight increase over 2023.
The serious delinquency rate for FHA loans dropped to 4.15%, consistent with pre-pandemic levels and significantly down from its November 2020 peak of 11.90%, according to the report.
MBA calls for MIP reductions
MBA president and CEO Bob Broeksmit urged policymakers to reconsider current mortgage insurance premiums, especially in a high-rate environment that has strained affordability for first-time and low- to moderate-income buyers.
“With mortgage rates well above 6%, MBA and its members remain very concerned about the constrained affordability conditions for qualified first-time homebuyers and low- and moderate-income households,” Broeksmit said in a statement.
“At 11.47%, the Mutual Mortgage Insurance Fund is more than five times the statutory minimum reserve ratio. While it is sensible to have a healthy cushion above the 2% minimum reserve, qualified borrowers should not be charged higher mortgage insurance premiums (MIP) than necessary.”
