The article discusses the guaranteed loan subsidy rate for Home Equity Conversion Mortgages (HECMs), which was recorded at -2.87% in 2024, indicating that the program produced excess receipts, thereby benefiting taxpayers. This rate is expected to slightly decline to -2.65% in 2025 before increasing to -3.13% in 2026. Alongside this, the HECM budget authority also shows a similar downtrend. The article highlights the ongoing disparity between forward mortgage insurance and the HECM program, with the latter projected at just $15 billion. Fiscal requests from the administration and further updates will be released in future HUD documents.
The guaranteed loan subsidy rate for HECMs was -2.87% in 2024, indicating program receipts exceeding costs, thus benefiting taxpayers instead of requiring subsidies.
The Budget submitted requests $160 million for MMI Program administrative expenses, underscoring support for FHA functions like loan underwriting and servicing.
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