Monthly endorsements by the Federal Housing Administration have risen over the past year, but reverse mortgage volume has declined. Serious delinquency on FHA-insured loans continued to deteriorate.
During October, there were 176,279 single-family FHA endorsements, the U.S. Department of Housing and Urban Development reported. Volume was almost unchanged from 176,753 endorsements the prior month and higher than 168,056 the prior year.
It was the first month of activity in the government’s fiscal 2010. By Sept. 30, 2010, endorsements are expected to total 1,875,000, off around 4 percent from fiscal 2009’s 1,946,809.
October activity included 105,901 purchase endorsements, off from 107,598 a month earlier. Refinance volume, however, climbed to 61,606 from September’s 59,682.
Home-equity conversion mortgage endorsements dropped to 8,772 from 9,473. In October 2008, HECM endorsements were 10,121.
Section 203(k) endorsements increased to 1,837 from 1,743, and condominium Section 234(c) activity was up to 10,121 from 10,034.
The average FICO score on all of October’s endorsements was 694, higher than 661 a year ago. Scores were higher for purchases and lower for refinances.
The average processing time from application to closing improved to 6.7 weeks from September’s 6.8 weeks.
New applications came in at 253,503 during October, easing from the previous month’s 254,019.
HUD said 5,614,948 FHA loans were outstanding for $714.0 billion as of Oct. 31, rising from 5,515,018 loans for $695.6 billion a month earlier and 4,472,108 loans for $493.3 billion a year earlier.
Delinquency of at least 90 days finished October at 8.7 percent, worsening from September’s 8.3 percent and last year’s 6.2 percent.