The Changing Fortunes of Fha&Apos;S Mutual Mortgage Insurance Fund and the Legislative Response

28 Pages Posted: 14 Nov 2007 Last revised: 26 Apr 2021

See all articles by Patric H. Hendershott

Patric H. Hendershott

University of Aberdeen - Centre for Property Research; National Bureau of Economic Research (NBER)

James A Waddell

affiliation not provided to SSRN

Date Written: January 1991

Abstract

The 1980s was a bad decade for FHA's Mutual Mortgage Insurance (MMI) program, the mainstay of FHA's single family mortgage insurance. While the MMI Fund is required by statute to be actuarially sound, the Fund lost close to $6 billion dollars, and its economic value declined from 5.3 percent of insurance-in-force to under one percent. This study documents the decline in the soundness of the MMI Fund in the 1980s and describes the legislation enacted in October 1990 to shore up the Fund.

Suggested Citation

Hendershott, Patric H. and Waddell, James A, The Changing Fortunes of Fha&Apos;S Mutual Mortgage Insurance Fund and the Legislative Response (January 1991). NBER Working Paper No. w3592, Available at SSRN: https://ssrn.com/abstract=471547

Patric H. Hendershott (Contact Author)

University of Aberdeen - Centre for Property Research ( email )

Aberdeen AB24 2UF
Scotland

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

James A Waddell

affiliation not provided to SSRN

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