Press Release

March 6, 2000

Tony Iallonardo

FHA Mortgage Insurance Fund Audit Results

WASHINGTON, DC -- The U.S. Conference of Mayors joined other organizations in signing a letter to Members of Congress urging them to pledge support for preserving and protecting the Federal Housing Administration (FHA) as an agency within the Department of Housing and Urban Development. The Conference signed the letter as FHA released an actuarial report showing its Mutual Mortgage Insurance Fund (MMI) is the healthiest it has ever been.

Upon learning of the audit results, J. Thomas Cochran, executive director of the Conference said, "Mayors across the nation will be very pleased to learn that FHA's Mutual Mortgage Insurance (MMI) Fund is in such good financial health. FHA plays such a critical role in expanding housing opportunities for minority and first-time home buyers in cities. The announcement of MMI's favorable actuarial report will signal to Mayors that they will continue to have a strong ally in Washington working with them."

The audit, prepared by the independent accounting firm Deloitte & Touche showed that the economic value of the fund is a record $16.367 billion, exceeding last year's valuation by more than $5 billion.

The United States Conference of Mayors is the official nonpartisan organization of cities with populations of 30,000 or more. There are about 1,100 such cities in the country today. Each city is represented in the Conference by its chief elected official, the Mayor.