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FHA Biz Up & Further Ascension Likely, HECMs Down

New loans insured monthly by the Federal Housing Administration rose, and further escalation is likely — though reverse mortgage volume was down again. Delinquency fell to the lowest rate in eight months. Multifamily business was off.

Data released by the Department of Housing and Urban Development indicate that FHA insurance was in force on 8,613,410 residential loans for $1.3224 trillion as of March 31.

FHA’s book of business consisted of $1.1736 trillion in single-family loans, $0.1479 trillion in home-equity conversion mortgages and $0.0010 trillion in Title I loans.

A month earlier, the total came to 8,616,030 loans for $1.3203 trillion. One year earlier FHA insurance was in force on 8,512,519 residential loans for $1.2744 trillion.

FHA endorsed 82,301 residential loans for $17.542 billion during March. Included in endorsements were $16.106 billion in single-family loans, $1.430 billion in HECMs — down for the second consecutive month to the lowest level since July 2017 — and $0.006 billion in Title I loans.

Production rose from 73,693 overall loans for $16.045 billion endorsed the preceding month. In the same month last year, 103,893 loans were endorsed for $21.312 billion.

For all of the first-quarter 2018, FHA endorsed 251,866 loans for $54.250 billion. Since starting fiscal-year 2018 on Oct. 1, 2017, FHA has endorsed
534,272 loans for $113.377. Fiscal year-to-date refinance share came to 28.0 percent.

March 2018 saw 125,862 new single-family and HECM applications,  more than 105,851 in February. FHA loans took an average of 42 days to close in Ellie Mae Inc.’s Origination Insight Report for March. So the elevated activity in new applications should convert to higher endorsement volume in April and May..

Loan delinquency of at least 30 days was 10.23 percent — the lowest rate since July 2017’s 10.15 percent. Reflected in the rate were a 4.66 percent 90-day rate, an 0.84 percent bankruptcy rate and a 1.15 percent foreclosure rate.

FHA delinquency was 11.56 percent as of Feb. 28 of this year and 9.45 percent as of March 31 of last year.

In FHA’s commercial real estate business,
117 loans were endorsed for $1.726 billion — including $1.351 billion in multifamily loans and $375 million in resident-care loans.

Total CRE production was
similar to 116 loans for $1.770 billion during February. Business has accelerated versus 84 units for $0.861 billion in March 2017.

HUD’s data indicate that 15,081 CRE loans for which FHA insurance was in force on $124.215 billion included $89.364 billion in multifamily loans, $27.926 billion in resident-care loans and $6.926 billion in hospital loans.

A month earlier, FHA’s CRE book stood at
15,021 loans for $125.073 billion, while it was 14,416 loans for $111.607 billion a year earlier.

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