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The Changing Fortunes of FHA's Mutual Mortgage Insurance Fund and the Legislative Response


  • Patric H. Hendershott
  • James A. Waddell


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

  • Patric H. Hendershott & James A. Waddell, 1991. "The Changing Fortunes of FHA's Mutual Mortgage Insurance Fund and the Legislative Response," NBER Working Papers 3592, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:3592
    Note: ME

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    Cited by:

    1. Patric H. Hendershott & Thomas G. Thibodeau & Halbert C. Smith, 2009. "Evolution of the American Real Estate and Urban Economics Association-super-1," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 37(4), pages 559-598.

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