Fannie Mae-No Politics (FNMA)

[navycmdr]

HUD Secretary Ben Carson Open to Excising HECMs from the MMIF

By George Brooks ... [e-mail]



Department of Housing and Urban Development Secretary Ben Carson indicated he is open to the idea of moving the Home Equity Conversion Mortgage program out of the FHA Mutual Mortgage Insurance Fund to stem future losses.

Testifying before the House Financial Services Committee on Thursday, Carson said the changes the department has made recently – as well as those currently under consideration – will eliminate the program’s problems although residual issues may linger.

Carson acknowledged that the HECM program’s default rate has been a drain on the MMI Fund even though it is much smaller than the FHA’s forward loan portfolio.

The recently revised HECM rules have “stopped the bleeding” in terms of new reverse mortgages, he added.