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New FHA Business Climbs to 2-Year High

It’s been almost two years since monthly government-insured mortgage originations were this strong. But despite an acceleration in new business, loan performance deteriorated.

The Federal Housing Administration endorsed 108,386 residential loans — including traditional loans, home-equity conversion mortgages and Title I loans — for a total of $21.624 billion during April.

Volume soared from the previous month, when there were 88,519 endorsements for $17.645 billion, and the year-earlier month, when 66,108 loans were endorsed for $11.400 billion.

The statistics were based on a Mortgage Daily analysis of data reported by the Department of Housing and Urban Development.

FHA volume was last this strong in
May 2013, a month that saw 129,788 loans endorsed for $21.937 billion.

The latest activity brought year-to-date April 30 endorsements to 323,849 loans for $62.559 billion.

From the beginning of its fiscal-year 2015 on Oct. 1, 2014, through the end of April, endorsements amounted to 541,023 loans for $101.465 billion.

May 2015 likely kept up with the prior month’s stellar volume based on new loan applications, which crept up to 175,390 in April from 174,895 in March.

April 2015 business included $20.383 billion in single-family endorsements, jumping from the previous month’s $16.378 billion.

HECM endorsements slipped, however, to $1.231 billion from $1.258 billion in March, and Title I activity was $0.001 billion during April, inching up from less than $0.001 billion.

FHA insurance was in force on 8,339,609 residential loans for $1.2049 trillion as of April 30, 2015. The book of business was off from 8,362,287 loans for $1.2097 trillion a month earlier and 8,479,954 loans for $1.2418 trillion a year earlier.

Included in the most-recent outstandings were $1.0561 trillion in single-family loans, $0.1477 trillion in HECMs and $0.0010 trillion in Title I loans.

Delinquency of at least 30 days on FHA’s single-family portfolio worsened to 11.62 percent as of April 30, 2015, from 11.47 percent at the end of the previous month.

The past-due rate, which includes foreclosures and bankruptcies, was 12.79 percent as of April 30, 2014.

FHA’s 90-day rate was 6.28 percent as of the most-recent date, while the foreclosure rate was 2.15 percent.

HUD data indicate total commercial real estate loan endorsements were 78 mortgages for $0.933 billion versus 94 loans endorsed for $0.389 billion in March and 143 loans for $1.192 billion in April 2014.

So far this calendar year, there have been 300 CRE loans endorsed for $2.143 billion, while fiscal year-to-date volume stood at 643 loans for $4.970 billion.

April 2015 volume included $0.707 billion in multifamily loans and $0.226 billion in nursing home loans.

There was insurance in force on 13,996 CRE loans for $103.232 billion as of the most-recent date.

CRE loans insured were up from 13,988 units for $102.770 billion one month prior and 13,548 loans for $97.412 billion one year prior.

The April 30, 2015, insurance-in-force total included $71.798 billion in multifamily loans, $23.653 billion in nursing home loans and $7.781 billion in hospital loans.

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