Mortgage Daily Logo
mortgage news from industry experts

FHA Biz Off and Headed Lower, Delinquency Worse

Monthly business dipped slightly at the Federal Housing Administration and is likely to fall further. Residential loan performance, meanwhile, deteriorated.

At the end of last year, FHA insurance was in force on 8,457,200 residential loans with an unpaid principal balance of  $1.2573 trillion as of Dec. 31, 2016.

The metrics were according to a Mortgage Daily analysis of monthly operational data reported by the Department of Housing and Urban Development.

FHA’s residential book of business included 7,842,834 single-family loans for $1.1127 trillion, 575,436 home-equity conversion mortgages for $0.1436 trillion and 38,930 Title I loans for $0.0010 trillion.

There were 114,772 residential loans endorsed by FHA for $23.552 billion during the final month of last year.
Business dipped from 115,419 loans for $23.682 billion the prior month and 93,182 loans for $18.305 billion a year prior.

From Jan. 1, 2016, through year-end 2016, FHA endorsed 1,346,497 residential loans for $269.419 billion, more than the 1,319,163 mortgages endorsed for $261.449 billion in 2015.

Last year’s endorsements included
1,294,373 single-family loans for $254.421 billion, 48,735 HECMs for $14.923 billion and 3,389 Title I loans for $0.075 billion.

Residential loans endorsed since FHA began its fiscal-year 2017 on Oct. 1, 2016, amounted to 350,749 units for $71.935 billion.

Single-family refinance share was 34.4 percent in December 2016, slightly thinner than 35.7 percent the previous month.

Business likely tumbled in January 2017 based on new single-family and HECM applications, which sank to 109,338 in the most-recent month from 137,850 in November.

Delinquency of at least 30-days on FHA’s single-family book was 11.73 percent as of year-end 2016, deteriorating from 11.32 percent a month earlier but retreating from 12.17 percent a year earlier. The December 2016 rate reflected a 1.46 percent foreclosure rate and an 0.87 percent bankruptcy rate.

Endorsements for FHA’s commercial real estate business, which are reported a month earlier than its residential business, came to eight loans for $0.039 billion in the first month of this year. CRE activity plunged from 171 loans for $2.304 billion in the final month of last year and 67 units for $0.851 billion in the first month of last year.

FHA has endorsed 393 CRE loans for $4.933 billion so far in fiscal-year 2017 including $4.056 billion in multifamily loans and $0.877 billion in resident-care loans.

FHA concluded January 2017 with insurance in force on 14,308 CRE loans for $110.060 billion — including $78.325 billion in multifamily loans, $25.282 billion in resident-care loans and $6.454 billion in hospital loans.

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