Mortgage Daily Logo

FHA Performance Improves

FHA News

Refinance endorsements drove monthly government mortgage lending higher, but purchase production appears poised to take the spotlight. The elevated origination activity didn’t spill over, however, into the reverse mortgage sector. Serious delinquency has improved for each of the past two months.

Mortgages insured by the Federal Housing Administration in March totaled 100,939 loans for $18.8 billion.

Volume grew from 90,561 mortgages endorsed for $16.5 billion during February. Business was also better than 99,112 FHA endorsements for $18.3 billion in March 2011.

Endorsements likely increased even further during April based on the 205,778 new applications received in March. Just 155,248 applications were submitted in February.

Refinance endorsements were the biggest driver of the overall increase in originations, climbing 27 percent for the month. Refinance business should remain elevated with new applications up 10 percent during March.

FHA purchase financing increased 8 percent over the previous month. But purchase applications skyrocketed 57 percent higher from February.

Home-equity conversion mortgage originations tumbled 15 percent from February to 4,381 HECMs endorsed in March for a maximum claim amount of $1.1 billion. New applications for HECMs, however, inched up 4 percent.

Section 203(k) endorsements fell to 1,704 from February’s 1,803. Condominium activity came in at 3,630, more than the 3,280 loans insured a month prior. FHA endorsed 1,636 manufactured housing loans, a few less than the previous month’s 1,678.

FHA mortgagees cut the average processing time from application to closing to 5.7 weeks from 6.0 weeks a month earlier. It took an average 6.7 weeks during the same month last year.

From Jan. 1 through March 31, FHA endorsed a total of 293,511 loans for $53.6 billion.

Since starting its fiscal year on Oct. 1, 2011, FHA endorsed 563,379 mortgages for $101.7 billion. By the end of fiscal-year 2012, the housing agency predicts that originations will reach 1.4 million loans for $248.6 billion.

HECM originations so far during calendar-year 2012 totaled 14,982 endorsements for a maximum claim amount of $3.6 billion. On a fiscal-year basis, 28,920 HECMs have been endorsed for $7.0 billion.

FHA’s book of business continued expanding, climbing to 7,590,450 loans with an aggregate unpaid principal balance of $1.0639 trillion.

The total was 7,494,104 loans for $1.0479 trillion at the end of February and 6,983,893 insured mortgages for $966.4 billion as of March 31, 2011.

Delinquency of at least 90 days was 9.4 percent, falling from 9.7 percent in February. It was the second consecutive month that delinquency has improved.

But the serious delinquency rate still sits above the 8.3 percent level at the same point last year.

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