The Changing Fortunes of FHA's Mutual Mortgage Insurance Fund and the Legislative Response
Working Paper 3592
DOI 10.3386/w3592
Issue Date
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.
Published Versions
Journal of Real Estate Finance and Economics, June 1992, pp. 119-132 citation courtesy of