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Highlights From FHA’s Annual Report to Congress

Highlights From FHA’s Annual Report to Congress

For a fourth consecutive year, the Home Equity Conversion Mortgage portfolio had a positive economic value. That’s according to the Department of Housing and Urban Development’s 2024 Annual Report to Congress released last week.

Key Takeaways:

  • The stand-alone capital ratio for the HECM portfolio stood at 24.50 percent in FY 2024 and 10.88 percent for the forward mortgage portfolio, both significantly higher than the congressionally mandated ratio of 2 percent.
  • The average Maximum Claim Amount increased slightly to $504,027 in FY 2024 from last year’s $490,417.
  • The average borrower age increased slightly to 75.23 years from 74.84 years in FY 2023.
  • HECM refinances decreased from 13.71 percent of total HECM endorsements in FY 2023 to 8.87 percent in FY 2024.
  • The average principal limit in FY 2024 was 44.36 percent of the maximum claim amount, down from 46.94 percent in FY 2023.
  • Insurance claims submitted to FHA fell to $5.47 billion, down from $5.71 billion in FY 2023. The vast majority of claims were Type 2, which result from loans being assigned to FHA at 98 percent MCA.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.