Government Accountability Office outlines reasons to keep the HECM in FHA MMI Fund
On its face, the calls the separate the highly-volatile Home Equity Conversion (HECM) from the FHA’s MMI (Mutual Mortgage Insurance Fund) appear fair-minded and pragmatic, but a recent report from the Government Accountability Office cited several reasons why the HECM should stay put. In it’s role as a government watchdog, the GAO is to provide nonpartisan analysis and accountability on how the federal government spends taxpayer dollars.
The GAO’s report entitled “Capital Requirements and Stress Testing Practices Need Strengthening” presents arguments for both moving the HECM to the Special Risk Insurance Fund and to keep it within the MMI fund where it has resided since 2009. In recent months pressure has mounted to move the HECM program from lawmakers and trade groups alike…
