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FHA Originations Up, Refis Set to Rise

October endorsements up 3% from September

Feb. 13, 2014

By Mortgage Daily staff

The latest monthly reading from the Federal Housing Administration showed an increase in new mortgage production, and another improvement appears to be ahead. FHA outstandings grew, but delinquency was worse.

The Department of Housing and Urban Development reported that 88,739 loans were endorsed by FHA for $15.386 billion during October -- its first month during fiscal-year 2014.

Business perked up from the previous month, when 86,330 mortgages were insured for $14.930 billion.

But it wasn't as good as in October 2012, when 126,877 home loans were endorsed for $22.697 billion.

Single-family endorsements accounted for 83,939 loans for $14.310 billion during the most recent month. Single-family activity rose from 81,314 loans for $13.790 billion in September.

Another 4,186 home-equity conversion mortgages were endorsed in October for $1.063 billion, declining from 4,517 HECMS for $1.130 billion a month earlier.

Title I endorsements rose to 614 units for $0.013 billion from 499 units for $0.010 billion. Title I endorsements during October included 564 property improvement loans and 50 manufactured housing loans.

New FHA business is set to rise when November's operational data is reported. Apps climbed to 93,516 from 83,445 in September.

Conventional-to-FHA refinance applications jumped 29 percent in October, while apps for FHA Streamline Low MIP refinances increased a quarter from September and FHA Streamline Standard MIP applications rose 21 percent.

Multifamily FHA endorsements were 84 loans for $0.992 billion in October, bringing to 10,371 multifamily loans for $63.938 billion that are outstanding.

FHA ended October with 8,491,242 loans outstanding for $1.2449 trillion.

Insurance in force expanded from 8,470,292 loans for $1.2439 trillion as of the end of fiscal-year 2013 a month earlier.

Outstandings have increased even more from Oct. 31, 2012, when 7,733,203 FHA-insured loans were outstanding for $1.0867 trillion.

Single-family loans accounted for $1.0982 trillion of the Oct. 31, 2013, total, while HECMs made up another $0.1457 trillion and Title I outstandings were $0.0010 trillion.

Residential delinquency of at least 30 days, including foreclosures and bankruptcies, was 14.54 percent as of the end of October.

The rate worsened from 14.49 percent a month earlier but retreated from 16.02 percent a year earlier.

The latest delinquency level reflected a 30-plus-day rate of 11.07 percent, a foreclosure rate of 2.31 percent and a bankruptcy rate of 1.16 percent.

Looking just at serious delinquency, the rate of FHA loans that were past due at least 90 days was unchanged from September at 8.04 percent but did improve from 9.50 percent at the same point in 2012.

FHA profile

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