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HECM

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Exploring the Strength of the FHA Insurance Fund 

Apr 26, 2011By

According to analysis by New View Advisors, a financial services firm dedicated to the reverse mortgage industry, the FHA's HECM mortgage insurance fund currently faces a negative net present value (NPV) estimated at $7.3 billion.  The negative analyzes the total MIP collected and compares it to actual realized losses and projected losses from loans originated between 1990-2010.   New View estimates that there are currently about 540,000 HECM loans outstanding with an approximate total outstanding balance of $76 billion.  Comparing the current balances of individual loans to home price data they estimate that 93,000 of those loans are currently

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