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FHA Delinquency Worse But Production Up

FHA News

The origination of government-insured mortgages picked up last month but might have weakened in August thanks to a drop in new refinance applications. Federally insured reverse mortgage volume tumbled in July, though new applications have rebounded. The rate of seriously delinquent government mortgage inched up again.

The Federal Housing Administration endorsed 110,924 loans for $20.5 billion during July.

Business picked up from June, when 107,533 mortgages were endorsed for $19.8 billion. Subsequent endorsement activity is poised to slip based on new applications, which fell to 181,951 in July from 188,810 in June.

Originations were also better than July 2011, when 91,533 FHA loans were insured for $16.1 billion.

During the seven months ended July 31, FHA has insured 734,930 mortgages for $135.5 billion.

Since starting its fiscal-year 2012 on Oct. 1, 2011, FHA has endorsed 1,004,666 mortgages for $183.4 billion. That total is projected to reach 1.4 million loans for $248.6 billion by the end of next month.

Refinance volume was $7.4 billion last month, up 10 percent from June. But new applications for FHA refinances fell 5 percent in July.

Purchase production came in at $12.2 billion, 3 percent better than June. Purchase applications, however, drifted down 2 percent in July from the prior month.

FHA endorsed 3,868 home-equity conversion mortgages in July for a maximum claim amount of $0.9 billion — down 31 percent from the prior month’s volume. But HECM business could strengthen in August based on new applications, which climbed 5 percent in July.

FHA endorsed 1,967 Section 203(k) loans last month, more than 1,885 endorsed in June.

Condominium volume climbed to 4,147 endorsements in July from 3,687 a month prior.

There was virtually no change from June in the number of manufactured housing loans endorsed by FHA, which totaled 1,799 in July.

FHA grew its mortgage insurance-in-force portfolio to 7,663,329 loans for $1.0758 trillion from the month-earlier total of 7,635,893 loans insured for $1.0716 trillion.

FHA’s book has grown significantly from July 31, 2011, when it stood at 7,202,951 loans for $1.0032 trillion.

Residential delinquency of at least 90 days was 9.47 percent as of the end of last month, a little worse than 9.44 percent as of a month earlier. A year earlier, serious delinquency was at an 8.31 percent rate.

The number of delinquent FHA-insured loans climbed to 725,645 from 721,105 in June and 598,921 in the same month last year.

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