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Chart of the Day: Obama Budget Forecasts HECM Volume Down 17% in 2012

Released earlier this week, Presdient Obama’s budget projects a $1.65 trillion deficit this year and includes $1.1 trillion in deficit-reduction measures over the next 10 years, with two-thirds of those savings coming from spending cuts and one-third from tax increases.

While the budget shows the HECM program no longer requires a subsidy from Congress, it also projects the Federal Housing Administration will endorse $20 billion of reverse mortgages in FY 2012, down 17.6% from the continuing resolution estimates for 2011.

Chart: HUD FY 2012 HECM Budget Projection


HUD FY 2012 HECM Budget Projection

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While the budget process is a long way from over, it’s the first time in two years the budget didn’t include a subsidy request for HECM program.  During the economic downturn, the Office of Management and Budget included a $798 million subsidy request for FY 2010, followed by a $250 million request for FY 2011.

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