The HUD budget requests $160 million for the Mutual Mortgage Insurance (MMI) Fund, addressing the increased costs associated with managing the Home Equity Conversion Mortgage (HECM) portfolio and loan servicing tools. This budget represents a rare increase from previous years, influenced by inflation and significant growth in the HECM portfolio, which has expanded tenfold since 2013. Despite consistent administrative funding, rising management costs necessitate additional funds to maintain service levels. Overall loan volume for MMI programs is projected significantly for 2026, emphasizing the importance of these funds for sustainable operations.
The budget request is somewhat higher than in years past, primarily to manage the growing HECM portfolio and related administrative demands.
The cost of managing the assigned HECM portfolio has surged dramatically, underscoring the financial pressures on HUD amidst increasing inflation and loan volumes.
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