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FHA Endorsements Fall, Could Go Lower

The monthly volume of residential loans endorsed by the Federal Housing Administration declined and could move even lower. A modest improvement was recorded for delinquency.

An analysis of data from the Department of Housing and Urban Development indicates FHA insurance was in force on 8,461,151 residential loans for $1.2518 trillion as of Sept. 30.

The total — including single-family loans, home-equity conversion mortgages and Title I loans — increased from 8,460,309 loans for $1.2497 trillion as of one month previous.

Growth in FHA’s book of business was more substantial versus one year previous, when insurance was in force on 8,389,328 loans for $1.2208 trillion.

The most-recent book included
$1.1063 trillion in single-family loans, $0.1445 trillion in HECMs and $0.0010 trillion in Title I loans.

FHA endorsed 120,943 residential loans for $24.677 billion during September 2016 including $23.519 billion in single-family loans, $1.153 billion in HECMs and $0.005 billion in Title I loans.

Total endorsement volume declined from 134,722 loans for $27.229 billion a month earlier and 124,334 loans for $24.580 billion a year earlier.

For all of fiscal-year 2016, endorsements came to 1,310,522 loans for $260.134 billion. Business was better than in fiscal-year 2015, when 1,179,357 loans were endorsed for $228.373 billion.

From Jan. 1, 2016, through Sept. 30, volume amounted to 995,755 loans for $197.484 billion.

Refinance share on single-family loans worked out to 30.9 percent of endorsements, widening from 29.0 percent in August.

Monthly endorsement volume likely receded further during October based on single-family and HECM loan applications, which tumbled to 152,521 in September from the prior month’s 172,031.

Delinquency of at least 30 days, including foreclosures and bankruptcies, on FHA’s single-family book of business was 10.97 percent as of Sept. 30, 2016. The past-due rate was down a basis point from the prior month and has tumbled 116 BPS from a year prior.

Included in the latest delinquency rate was a 1.50 percent foreclosure rate and an 0.86 percent bankruptcy rate. The 90-day rate, including foreclosures and bankruptcies, was 4.92 percent.

Commercial real estate loans endorsed during October 2016 came to 104 units for $1.527 billion. CRE business declined from 147 loans for $1.750 billion the previous month. In the same month last year, there were 105 loans endorsed for $1.030 billion.

During the first-10 months of 2016, there were 948 CRE loans endorsed for $11.636 billion.

Last month’s CRE endorsements included $1.320 billion in multifamily loans and $0.207 billion in resident care loans.

As of the latest month, FHA insurance was in force on 14,276 CRE loans for $109.675 billion. The total was 14,257 loans for $108.809 billion as of Sept. 30 and 14,068 loans for $105.500 billion as of Oct. 31, 2015.

The Oct. 31, 2016, total consisted of $77.872 billion in multifamily loans, $24.968 billion in resident care loans and $6.835 billion in hospital loans.

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