Summit, a Washington D.C.-based specialized analytics advisory firm, and Milliman, Inc., a premier global consulting and actuarial firm, today announced the availability of two detailed reports estimating the economic value of the Federal Housing Administration’s (FHA) Mutual Mortgage Insurance (MMI) Fund. The FHA released these reports publicly and they are now available online.
The yearly independent actuarial analysis of the economic net worth of the MMI Fund is required by the Cranston-Gonzalez National Affordable Housing Act (NAHA). Since the enactment of the NAHA capital standard, HUD has contracted with private firms to prepare an independent actuarial review study of the FHA single-family forward-loan insurance programs, including a written final report known as the Actuarial Review. Summit and its teaming partner Milliman, Inc. were chosen to provide this review and report for fiscal year 2013.
Summit and Milliman conducted analysis for FHA on two groups of mortgages within the MMI Fund: Forward Mortgages and Home Equity Conversion Mortgages (HECMs). The team produced reports to summarize FY 2013 actuarial review findings derived from cash flow models developed to project future portfolio value, integrating potential effects of policy changes.
Summit and Milliman are pleased to have served on this highly complex and important engagement, as this analysis helps to inform FHA’s insurance programs and policies into the future.
About Milliman
Milliman is among the world’s largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit www.milliman.com