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FHA CRE Biz Skyrockets, SFR Refi Biz Headed Higher

There was little change in monthly residential business at the Federal Housing Administration, though refinance activity is poised for an increase. But commercial real estate activity soared.

At the midpoint of this year, FHA insurance was in force on 8,552,967 residential loans for $1.2901 trillion, according to an analysis of data reported by the Department of Housing and Urban Development.

The total included $1.1455 trillion in single-family loans, $0.1436 trillion in home-equity conversion mortgages and $0.0010 trillion in Title I loans.

FHA’s overall residential book of business expanded from 8,539,404
loans for $1.2848 trillion as of May 31 and 8,445,779 loans for $1.2428 trillion as of June 30, 2016.

June 2017’s residential endorsements came to 111,875 loans for $22.859 billion — including $21.255 billion in single-family loans, $1.598 billion in HECMs and $0.006 billion in Title I loans.

Total production was little changed from 112,422 loans for $22.896 billion a month earlier and just shy of
119,730 loans for $23.654 billion a year earlier.

Full first-half 2017 endorsements amounted to 634,507 loans for $129.641 billion, while there have been 985,250 loans endorsed for $201.576 billion since its fiscal-year 2017 began on Oct. 1, 2016.

Refinance share on the single-family portion of was 22.7 percent during June 2017 — down each month since February, when the share was 36.1 percent.

It appears that July 2017 endorsements were around the same as the prior month based on new loan applications, which numbered 154,298 in June versus 155,516 in May. However, purchase-money business likely fell based on a
4 percent decline in applications, while refinances likely rose due to 7 percent increase in applications.

HUD’s data indicate that single-family delinquency of at least 30 days, including foreclosures and bankruptcies, was 10.05 percent as of June 30, 2017, no different than the prior
month but lower than 10.85 percent a year prior.

The latest month’s 90-day rate was 4.28 percent, while the foreclosure rate was 1.37 percent, and the bankruptcy rate was 0.85 percent.

Moving on to commercial mortgage metrics, which are reported a month sooner than residential statistics, FHA endorsed
147 loans for $1.988 billion during July. CRE endorsements included $1.467 billion in multifamily loans and $0.521 billion in resident-care loans.

Total CRE business exploded compared to just 56 loans endorsed for $0.801 billion the preceding month and 83 loans endorsed for $0.953 billion the same month in the preceding year.

Calendar year-to-date CRE endorsements have so far worked out to 597 loans for $8.411 billion, and fiscal year-to-date activity amounted to 982 loans for $13.304 billion.

FHA insurance was in force on 14,539 CRE loans for $114.223 billion as of July 31, 2017. The total reflected $81.084 billion in apartment loans, $25.980 billion in resident-care loans and $7.159 billion in hospital loans.

The CRE book of business was 14,397 loans for $112.404 billion as of mid-2017 and 14,232 loans for $107.931 billion as of July 31, 2016.

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