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| Loans insured by the Federal Housing Administration performed worst in the Motor City, according to a recent monthly report. Volume and market share declined for federally-insured mortgages.
FHA loans insured totaled 68,802 loans for $9.3 billion during the fiscal first quarter ended Dec. 31, according to the January 2007 FHA Business Activity report from the Office of Finance and Budget — Federal Housing Administration. The volume numbers, reported on a one-month lag, indicated 32,765 loans for $4.4 billion were insured during just December. FHA’s market share in December was 13 percent, while the conventional share was 82 percent and the VA share was 5 percent, according to the report. FHA’s market share for the full fiscal quarter was 18 percent — indicating a recent significant decline. But as a percentage of overall home sales, FHA’s portion was 3.7 percent in December, rising from 2.7 percent for the full quarter. Single-family mortgages insured amounted to 3.8 million loans for $336.3 billion at the end of January, off 6 percent from a year earlier, the agency of the U.S. Department of Housing and Urban Development said. The Title I portfolio ended the period at 28,115 units at $0.4 billion — tumbling 23 percent, while Title I manufactured housing loans dropped 12 percent to 23,736 loans for $0.7 billion. The 90-plus-day default rate on the residential portfolio was 7 percent on Jan. 31, the report indicated. At nearly 14.0 percent, Detroit had the highest default rate of all metropolitan statistical areas reported for data based on December. Next was New Orleans at nearly 13.5 percent, followed by Cleveland at 12.8 percent. Midwestern areas dominated the list of MSAs with the highest delinquency. Multifamily properties insured by FHA aggregated 12,300 loans for $56.7 billion at December’s end, up 1.5 percent from a year earlier, the report said. |
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