Federal Housing Administration endorsements have fallen over the past year, with reverse mortgage production down by half. If new applications are any indication, overall government business could fall by another third this month. The latest FHA projection has annual business down by 9 percent in fiscal 2011. But the good news is that federally insured mortgages are performing better.
There was virtually no change in monthly FHA volume.
The housing agency endorsed 125,218 loans for $24.4 billion during its first fiscal month of 2011. Volume during September was 126,326 loans for $24.4 billion.
But business was clearly worse than 176,279 mortgages endorsed for $32.2 billion during October 2009.
Refinance endorsements amounted to 54,158 for $11.4 billion, while October’s purchase activity was 65,781 loans for $11.7 billion.
Home-equity conversion mortgage production — which is included in the overall numbers — was 5,279 loans for $1.3 billion, falling again from September’s 5,966 HECMs for $1.5 billion. During October of last year, 8,772 reverse mortgages were endorsed for $2.6 billion.
Last month’s activity also included 1,633 Section 203(k) endorsements, 5,836 condominium endorsements and 1,811 manufactured housing endorsements.
While overall applications have increased each month since June, when there were 168,915, the corresponding volume of endorsements has fallen. October applications reversed the rising activity — falling to 175,421 from the previous month’s 255,938.
Average processing time from application to closing increased to 6.9 weeks from 6.8 weeks in September.
From Jan. 1 to the end of October, 1,359,975 FHAÂ mortgages have been endorsed for $249.8 billion.
By the time its new fiscal year ends on Sept. 30, 2011, FHA projects that it will have endorsed 1.5 million mortgages for $288.7 billion.
Last year, FHA endorsed 1.7 million mortgages for $318.8 billion.
FHA said its mortgage insurance-in-force grew to 6,684,825 loans for $909.1 billion from the previous month’s 6,624,780 loans for $897.5 billion.
One good piece of news from the housing agency was that loan delinquency of at least 90 days improved to 8.0 percent from September’s 8.5 percent.
The rate of late payments was also better than 9.0 percent on Oct. 31, 2010.
