Mortgage Daily Logo

FHA Volume Higher But Headed Lower

FHA News

Originators reversed a four-month losing streak and pushed government originations higher. But if new applications are any indication — this month’s volume is headed for a tumble. The decline in new applications, which came despite an increase in reverse mortgage applications, was driven by a steep drop in refinance activity. Meanwhile, serious delinquency got more serious.

During December, 179,155 loans for $32.5 billion were endorsed by the Federal Housing Administration, according to new data from the U.S. Department of Housing and Urban Development. Endorsements increased from 157,119 units for $28.7 billion a month earlier and 140,076 endorsements for $25.1 billion a year earlier.

Since its fiscal year began on Oct. 1, FHA endorsements totaled 512,536 — including 304,968 purchase transactions, 182,775 refinances and 24,793 HECMs. By the end of its fiscal year, the agency projects 1.9 million total endorsements.

New FHA applications tumbled to 141,766 from November’s 205,808. The decline was primarily attributable to the drop in refinance applications — which fell to 60,387 from 112,095. But reverse mortgage applications rose to 6,926 from 6,571.

Purchase transactions accounted for 59 percent of December’s endorsements, while refinances represented another 36 percent and home-equity conversion mortgages accounted for nearly 5 percent.

HECM volume rose to 8,284 loans for a maximum claim amount of $2.3 billion from November’s 7,738 HECMs for $2.2 billion. But reverse mortgage production tumbled from 9,761 in December 2008 — though the maximum claim amount a year ago was only $2.1 billion.

Section 203(k) endorsements climbed to 1,800 from the prior month’s 1,637 and the prior year’s 1,409. Condominium endorsements increased to 10,483 from 9,252 and December 2008’s 6,417

The weighted average FICO score on all FHA endorsements last month was 694, unchanged from November. But the average improved from 661 a year ago. The average processing time from application to closing lengthened to 7.5 weeks from 6.5 weeks the previous month and 5.4 weeks a year ago.

As of the end of last year, 5,815,006 FHA mortgage insurance policies were outstanding on $750.3 billion in mortgages, higher than 5,721,487 loans for $733.6 billion at the end of November. At the end of 2008, mortgage insurance was in force on 4,681,291 loans for $533.1 billion.

FHA delinquency of at least 90 days climbed to 9.1 percent on Dec. 31 from 8.9 percent a month earlier and 6.8 percent a year earlier.

Related Posts

Best Mortgage Lenders By Category

Best Mortgage Lenders By Category

A report based on a recent survey of consumers who were shopping for a residential loan has identified the best home lenders in a variety of categories -- including government programs, jumbo loans and online services. The 10-question survey of prospective mortgage...

Best Mortgage Lenders By Category

FHA Endorsements Edge Higher, Book of Biz Grows

Monthly residential government-insured mortgage production was nudged up, though commercial real estate endorsements plunged. The book of business continued to grow. At the end of August, the Federal Housing Administration had insurance in force on 8,622,052...

Best Mortgage Lenders By Category

FHA Endorsements Inch Up, Might Rise More

Monthly Federal Housing Administration business inched higher and might accelerate further. Delinquency turned sharply higher, and reverse mortgage production was the slowest it's been in four years. But commercial mortgage endorsements doubled. As the first half of...

Best Mortgage Lenders By Category

SF Endorsements Up, Delinquency Down at FHA

Monthly new business was moderately higher in the Federal Housing Administration's residential business, while loan performance improved. But commercial mortgage endorsements plunged. Data reported by the Department of Housing and Urban Development indicate FHA...

Best Mortgage Lenders By Category

FHA False Claims Actions Among Industry Concerns

Among the concerns shared by attendees at a recent secondary marketing conference is the legal uncertainty accompanying government-insured originations. A majority want a company-wide production management dashboard. The Mortgage Bankers Association hosted its annual...

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