Comments on: FHA Profits Going To The Treasury http://www.fhaloanpros.com/2008/05/fha-profits-going-to-the-treasury/ The Unofficial Guide to FHA Loans & Mortgages Mon, 01 Dec 2008 18:06:16 +0000 http://wordpress.org/?v=2.6 By: Casey Moseman http://www.fhaloanpros.com/2008/05/fha-profits-going-to-the-treasury/#comment-13675 Casey Moseman Mon, 02 Jun 2008 21:49:12 +0000 http://www.fhaloanpros.com/2008/05/fha-profits-going-to-the-treasury/#comment-13675 In support of your quote from FHA Commissioner Brian Montgomery, I found the following statement off of www.hud.gov. http://www.hud.gov/local/or/working/fha25year.pdf It's a 26 page report that details the first 25 years of FHA. Specifically quoted from the report: “The borrower’s regular mortgage payment would include a mortgage insurance premium which the lender would pay annually to the FHA. In time the accumulation of premiums would make the agency self-supporting and possibly provide dividends to mortgagors.” So in short, why is FHA giving the surplus to the US treasury and not back to the borrowers? Interesting that the program was not set up to provide the treasury with any surplus but now they receive it at the end of the day. In support of your quote from FHA Commissioner Brian Montgomery, I found the following statement off of http://www.hud.gov. http://www.hud.gov/local/or/working/fha25year.pdf

It’s a 26 page report that details the first 25 years of FHA. Specifically quoted from the report:

“The borrower’s regular mortgage payment would include a mortgage insurance premium which the lender would pay annually to the FHA. In time the accumulation of premiums would make the agency self-supporting and possibly provide dividends to mortgagors.”

So in short, why is FHA giving the surplus to the US treasury and not back to the borrowers? Interesting that the program was not set up to provide the treasury with any surplus but now they receive it at the end of the day.

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