Mortgage Daily Logo

FHA Fundings Fall, Delinquency Deteriorates

FHA News

Last month, delinquency on government-insured mortgages jumped around 30 basis points and was a full percent higher than the same time last year. Meanwhile, reverse mortgage production sank and purchase activity diminished — driving down overall government originations.

During October, the Federal Housing Administration endorsed 88,060 loans for $15.7 billion. Because FHA’s fiscal year started on Oct. 1, fiscal year-to-date volume was the same as October’s total volume.

Activity fell from the previous month, when 91,963 FHA loans were insured for $16.2 billion, according to monthly operational data disclosed by the housing agency.

Originations tumbled from a year earlier, when 125,218 loans were endorsed for $24.4 billion.

From Jan. 1 to Oct. 31, endorsements amounted to 961,715 loans for $174.0 billion.

But last month’s lull in total endorsements appears to be only temporary based on new applications, which inched up to 129,675 from September’s 129,045 applications.

The average processing time from application to closing took longer, expanding to 6.0 weeks from 5.9 weeks a month earlier. But processing time has been cut from 6.9 weeks during October 2010.

Based on closed dollar volume, purchase production fell 9 percent from September to $10.2 billion. In addition, purchase strength appears to be weakening even more, with new applications falling 4 percent. However, the recent reinstatement of jumbo FHA loan limits could place upward pressure on upcoming activity.

Government refinance endorsements rose 22 percent to $4.4 billion, while new refinance applications climbed 7 percent. But recent strength in the stock market has driven Treasury yields higher and could put the kibosh on a continued FHA refinance rally.

Included in total originations last month were 4,653 home-equity conversion mortgages endorsed for a maximum claim amount of $1.1 billion. HECM activity tumbled from 5,590 loans for $1.4 billion in September. During the same month last year, FHA insured 5,279 reverse mortgages for a maximum claim amount of $1.3 billion.

It looks like November will be no better for HECM endorsements, with applications slipping 1 percent between September and October.

FHA endorsed 2,016 Section 203(k) loans in October, down 9 percent from the prior month. Condominium endorsements fell 5 percent to 2,998, and manufactured housing originations were down 3 percent to 1,648 endorsements.

There were 7,342,078 FHA loans outstanding as of Oct. 31 for $1.0255 trillion. Mortgage insurance in force grew from September, when there were 7,304,368 loans outstanding for $1.0197 trillion.

Mortgage insurance in force was up more than $106 billion from the same point in 2010.

Delinquency of at least three months jumped to 9.0 percent as of the end of October from 8.7 percent as of Sept. 30. Ninety-day delinquency was a hundred basis points worse than on Oct. 31, 2010.

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...

Newsletter

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