twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Origination News | Lender Ranking | Fundings by Lender | Statistics
Quarterly residential mortgage production by lender. Subprime, Alt-A, home equity and conforming originations. Volume by quarter since 2003.


FHA Production Grows

Solid activity amid overall market slowdown

November 7, 2006

By JERRY DeMUTH


While fewer FHA-insured mortgages were funded during the most recent fiscal year, higher balances pushed the dollar volume higher. The activity contrasts that of the overall mortgage market.

The Federal Housing Authority experienced a 10% decline in single-family loans in fiscal year 2006 from fiscal 2005 but saw a 17% increase in the dollar value of its loans, a Department of Housing and Urban Development spokesman told MortgageDaily.com. The dollar increase indicates FHA's market share has stabilized.

A year earlier, FHA single-family loan originations had fallen 44% from fiscal 2004's numbers, the spokesman noted. The stabilization was attributed to the implementation of administrative changes that align the FHA's practices with conventional lending practices.

The Mortgage Bankers Association's chief residential economist, Mike Fratantoni, agreed with the HUD assessment. "They seem to be stabilizing," he said.

But the latest FHA figures are even more meaningful when compared with total loan originations, he explained. "It's important to see the FHA's figures in the context of the overall market."

Fratantoni pointed out that overall mortgage production totaled $721 billion in the second quarter of 2006, a 10% drop from the $800 billion of loans originated in the second quarter of 2005.

But the dollar amount of FHA loans, according to HUD's figures, increased almost 17% to $72.8 billion in fiscal 2006 from $62.3 billion in fiscal 2005.

The actual number of FHA loans fell to 501,984 in fiscal 2006 from 555,557 in the preceding fiscal year, a decline of almost 10%.

But the number of total originations in the overall market also fell, Fratantoni said.

In the first half of 2006, according to the MBA's Mortgage Originations Survey, total first mortgage originations decreased by 16 percent, purchase mortgage volume fell 10% and refinance volume fell 22% when compared to the second half of 2005.

However, John Councilman, Federal Housing Chair for the National Association of Mortgage Brokers, was less impressed with the almost 17% increase in dollar volume.

"The increase in dollar volume is easily explained by slightly increased loan limits and more expensive homes over the [2005 to 2006] time period," said Councilman, president of AMC Mortgage Corp., Fallston, Md.

Besides, he adds, the FHA's mission is not to increase its dollar volume but to help the largest number of underserved borrowers obtain home loans. And to fulfill this mandate, the FHA, he stressed, "needs legislation to make certain important changes, such as risk-based pricing and loan-to-value adjustments."

The MBA's Fratantoni also said that, despite the improved numbers, FHA still needs the legislation that has been stalled in Congress if it is ever to regain the market share it has lost.

"Our government affair folks are hopeful the FHA reform package can get through Congress after the election," he said. "It's questionable whether the FHA could get back their past market share without that legislation."


Jerry DeMuth is an award winning journalist who has been reporting for four decades.

e-mail Jerry at [email protected]

FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.



Logout forgot
password?

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.



Mortgage Fraud Index
Dollar and index amount by quarter and state.



Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013



Mortgage Fraud News
News stories about fraud committed against home lenders.



Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.



local mortgage fraud


mortgage fraud links



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders