Monthly business turned lower at the Federal Housing Administration, and a further decline is likely. Meanwhile, delinquency deteriorated.
Residential loans that were endorsed by FHA in April numbered 96,878, while the aggregate principal balance of the loans was $19.719 billion.
That was according to an analysis by Mortgage Daily of operational data released by the Department of Housing and Urban Development.
Production fell from the
preceding month, when 103,893 loans were endorsed for $21.312 billion. During the same month in the preceding year, volume worked out to 101,743 loans for $19.917 billion.
The most-recent month’s endorsements were comprised of
$18.084 billion in single-family loans, $1.629 billion in home-equity conversion mortgages and $0.006 billion in Title I loans.
Endorsements during the first-four months of this year amounted to 410,209 loans for $83.886 billion, while FHA has endorsed 760,954 loans for $155.821 billion since its fiscal-year 2017 began on Oct. 1, 2016.
Business likely deteriorated further during May 2017 based on total new single-family and HECM applications, which declined to 139,046
from 159,682 in March.
Single-family refinance share was reduced to 27.2 percent in April 2017 from 31.6 percent the previous month.
HUD’s data indicate that FHA insurance was in force on 8,524,330 residential loans with a collective unpaid principal balance of $1.2790 trillion as of April 30, 2017. The book of business grew from 8,512,519 loans for $1.2744 trillion a month earlier and 8,447,949 loans for $1.2397 trillion a year earlier.
The latest insurance-in-force total consisted of $1.1345 trillion in single-family mortgages, $0.1435 trillion in HECMs and $0.0010 trillion in Title I loans.
Delinquency of at least 30 days on FHA’s single-family book of business, including foreclosures and bankruptcies, jumped to 10.42 percent from 9.45 percent as of March 31, 2017. But loan performance has improved from April 30, 2016, when the non-current rate was 10.53 percent.
Delinquency of 90 days was 4.47 percent as of the end of April 2017, while the foreclosure rate was 1.44 percent, and the bankruptcy rate was 0.86 percent.
HUD reports FHA’s commercial real estate metrics a month sooner than residential statistics.
The data indicate that 43 CRE loans were endorsed for $0.910 billion during May 2017. CRE production sank from 82 loans for $1.514 billion the prior month. A year prior, FHA endorsed 84 units for $0.902 billion.
The latest month’s endorsements included $0.694 billion in multifamily loans, $0.130 billion in resident-care mortgages and $0.086 billion in hospital loans.
CRE endorsements from Jan. 1, 2017, through May 31 came to 394 loans for $5.621 billion, while there have been 779 CRE loans endorsed for $10.515 billion so far during fiscal-year 2017.
FHA insurance was in force on 14,347 CRE loans with an unpaid principal balance of $111.908 billion as of May 31, 2017. The CRE book of business grew from 14,383 loans for $111.793 billion at the end of the previous month and 14,180 loans for $107.098 billion at the same point in 2016.
Most recently, the CRE book included $79.437 billion in multifamily mortgages, $25.328 billion
in resident-care loans and $7.143 billion in hospital loans.
