Mortgage Daily Logo
mortgage news from industry experts

FHA Delinquency Down 3rd Consecutive Month

Late payments on government-insured mortgages have fallen each of the past three months. New originations fell and appear headed even lower, but declining volume on home-equity conversion mortgages is likely to reverse.

Endorsements by the Federal Housing Administration fell to 126,316 loans for $22.9 billion in April from March’s 131,978 loans for $24.4 billion, government data indicate. Activity has fallen by nearly a quarter from April 2009, when 162,351 loans were endorsed for $30.5 billion.

Refinances accounted for 29 percent of April’s endorsements, down from a one-third share in March. The average FHA processing time from application to closing continued to improve — to 6.6 weeks in April from 7.7 weeks the previous month.

From Oct. 1, 2009, to April 30, FHA endorsed 1,061,655 loans for $194.0 billion. By the end of its fiscal year on Sept. 30, endorsements are expected to reach 1,875,000 loans for $349.7 billion. On a calendar year basis, year-to-date volume was 549,207 loans.

The volume of home-equity conversion mortgage endorsements continued its descent — falling to 5,511 loans for $1.4 billion from March’s 7,024 loans for $1.9 billion. HECM volume was less than half the 11,660 HECMs endorsed for $3.1 billion in April 2009.

Section 203(k) endorsements inched up to 1,856 from 1,804 in March, while condominium endorsements fell to 6,330 from 7,541.

FHA received 215,578 applications last month, fewer than April’s 246,406. The decline was fueled by refinance activity, which was down a quarter. HECM applications, however, rose 10 percent.

The weighted-average FICO score on April originations was 697, unchanged from the prior month but higher than 672 the prior April.

The housing agency said 6,192,885 FHA loans were outstanding for $820.0 billion at the end of last month, more than 6,014,729 loans for $786.5 billion outstanding at the end of March. FHA outstandings stood at 4,975,546 loans for $591.2 billion a year earlier.

Delinquency of at least 90 days fell to 8.5 percent on April 30 from 8.8 percent on March 31. While late payments remain elevated above 5.9 percent on April 30, 2009 — last month was the third month in a row that delinquency improved.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts