The 2014 actuarial assessment of the Federal Housing Administration’s main funding source for its loan insurance program – the Mutual Mortgage Insurance Fund (MMI)- reveals that the FHA’s financial situation is much improved but not as strong as last year’s predictions suggested it would be. This HFPC analysis lays out the methods used in the actuarial report and explains why the MMI’s current status should have no impact on the decision as to whether to lower premiums.