The Federal Housing Administration (FHA) released its Fiscal Year 2020 Annual Report to Congress, which details the status of FHA’s Mutual Mortgage Insurance Fund (MMIF), as well as the breakdown of the borrowers served by FHA programs throughout the year. “In addition to assisting homeowners struggling financially, during this past fiscal year FHA continued to play a leading role in supporting homeownership for first-time, minority, and low- and moderate-income homebuyers,” said HUD Secretary Carson.

The report illustrates FHA’s impact on first-time and minority homeownership, the National Council of State Housing Agencies said: “FHA endorsed more than 1.3 million home mortgage loans through its forward mortgage program, including 817,847 mortgage loans to homebuyers, 83.1 percent of whom were first-time buyers.” Minority households accounted for roughly 32% of forward mortgage purchases in FY 2020 – 17.3% of which were Hispanic, 12.7% were Black, 2.2% were Asian and 0.4% were American Indian.

Despite strong purchase volume, FHA’s market share decreased from 11.6% in the prior year to 9.6% in 2020. FHA also highlighted a 1.26% gain in the overall capital ratio, putting the agency “well above” its congressionally mandated 2% capital ratio. “I think if you take all the actions that we’ve put in place, and put them all together, it’s really had a positive impact on the capitalization of the fund, which is a great thing for taxpayers that stand behind the FHA,” FHA Commissioner and Assistant Secretary Dana Wade told HousingWire in an interview this week. 

Mortgage Bankers Association President and CEO Bob Broeksmit issued a statement following the release of the report, saying, “We look forward to working with HUD and FHA on further efforts to improve the program for borrowers and lenders alike while protecting taxpayers, especially with the ongoing challenges and uncertainty presented by the pandemic. As that picture becomes clearer, including how the 800,000 FHA borrowers currently in forbearance will exit, FHA should begin to re-examine premium levels.”

The Department of Housing and Urban Development (HUD) announced more than $86 million in new COVID-19-related funding that will be available through Mainstream Vouchers to public housing agencies (PHAs). HUD published the awards, which will be distributed to roughly 160 PHAs across more than 30 states.

“Recently, we have learned a great deal about coronavirus and the impact it has on all of our nation’s people,” said HUD Secretary Ben Carson. “Now, we must apply this knowledge to protect and save lives, especially when it comes to populations that face adversity in the form of mental, physical, and emotional challenges. Understanding the needs of these populations, Mainstream Vouchers provide targeted assistance to non-elderly populations with disabilities in the department’s ongoing effort to provide resources to combat COVID-19.”

Several senators welcomed the additional funding. Sen. Susan Collins (R-Maine) announced that five different PHAs in her home state will receive $1.48 million in new funding from HUD. West Virginia Sens. Shelley Moore Capito (R-W.Va.) and Joe Manchin (D-W.Va.) also released statements of support. “Over 10,000 children and youth are experiencing homelessness across the state, and we know that number is likely much higher,” said Sen. Manchin. “This funding will help those families find affordable, reliable housing in Clarksburg, Charleston and Parkersburg so they have a safe place to sleep and a roof over their head.”

On Friday, NHC hosted a Restoring Neighborhoods Webinar examining the role of housing finance agencies in addressing affordable housing challenges, particularly during COVID-19. NHC’s David Dworkin spoke to NHC members Tia Boatman Patterson, executive director of the California Housing Finance Agency (CalHFA), and Jeff Sykes, CFO of the Michigan State Housing Development Authority (MSHDA). Both CalHFA and MSHDA were recognized as recipients of the National Council of State Housing Agencies 2020 Awards for Program Excellence.

Patterson discussed the programs CalHFA has deployed during the pandemic, including housing counseling, made possible by the National Mortgage Settlement Fund, as well as a mortgage assistance program, currently under development, for small landlords with one to four rental properties. She also highlighted the organization’s Mixed-Income Housing and Bond Recycling programs. Sykes discussed how MSHDA has deployed relief funds, short-term payment deferrals and flexible gap financing to support multifamily housing providers in Michigan. He also explained the evolution of the organization’s Below Market Rate Bond Program.

Both panelists expressed concern with the impact of the impending expiration of unemployment benefits and other COVID-19 relief at the end of the year on renters and property owners. As the Biden transition team prepares its agenda for the first 100 days, Sykes encouraged the administration and the new Congress to focus on additional resources for struggling renters and homeowners. Patterson said that making sure HUD was fully staffed should be a top priority.

You can view the recording here.

On Wednesday, the Federal Deposit Insurance Corporation (FDIC) published a Request for Proposal for a financial advisor to guide the development of its newly announced Mission-Driven Bank Fund. The new fund will drive private capital to FDIC-insured Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs).

The more than 250 FDIC-insured MDIs and CDFIs play a central role in serving minority, low-income, and rural communities. According to FDIC, MDIs’ mortgage and small business loan portfolios include a larger share of low- to moderate-income borrowers, while more than half of the lending and services CDFIs extend are provided to low-income communities. Once established, the Mission-Driven Bank Fund will help MDIs and CDFIs raise capital, expand their services, attract new talent, acquire new technology and build out capacity.