New business at the Federal Housing Administration fell to a nine-month low, and a further drop is likely. Delinquency deteriorated. Meanwhile, the book of business continued to grow.
At the conclusion of November, FHA insurance in force was
8,596,795 residential loans for $1.3110Â trillion, according to data from the Department of Housing and Urban Development.
The residential book of business expanded from 8,595,615 loans for $1.3088 trillion a month earlier and 8,456,057 loans for
$1.2551 trillion a year earlier.
The latest total consisted of
$1.1638 trillion in single-family loans, $0.1463 trillion in home-equity conversion mortgages and $0.0010 trillion in Title I loans.
FHA endorsed 93,514 residential loans for $19.574 billion — the slowest month since February 2017. There were 102,615 units endorsed for $21.369 billion in October. In the same month during 2016, FHA endorsed 115,419 loans for $23.682 billion.
November 2017’s endorsements included $18.019 billion in single-family loans, $1.549 billion in HECMs and $0.006 billion in Title I loans.
Refinance share was 26.5 percent, widening from 25.8 percent a month earlier. So far in fiscal-year 2018, which began on Oct. 1, 2017, refinance share worked out to 26.1 percent.
New single-family and HECM applications fell to 113,129 from 122,073 in October, suggesting a further decline in endorsements took place during December.
During the first-11 months of 2017, residential endorsements amounted to 1,150,388 loans for $236.879 billion. Since starting fiscal-year 2018, FHA has endorsed 196,129 loans for $40.943 billion.
HUD’s data indicate that single-family delinquency of at least 30 days, including bankruptcies and foreclosures, was 12.27 percent, climbing 21 basis points from a month earlier and 95 BPS worse than one year earlier.
Ninety-day delinquency jumped 41 BPS to 4.83 percent. The foreclosure rate most recently was
1.16 percent, while the bankruptcy rate was 0.79 percent.
In FHA’s commercial real estate business, 80 loans were endorsed for $0.928 billion during November, sinking from 177 loans for $3.158 billion the previous month
and also lower than 110 loans for $1.062 billion in the same 30 days during 2016.
The latest CRE endorsements were comprised of $0.543 billion in multifamily loans and $0.385 billion in resident-care loans.
So far during calendar-year 2017, there were 1,189 CRE loans endorsed for $17.184 billion, while the total was 257 loans for $4.086 billion so far in fiscal-year 2018.
FHA’s CRE book of business grew to 14,875 loans for $120.226 billion from the prior month’s 14,807 loans for $119.525 billion and 14,296 loans for $109.733 billion a year prior.
The latest total was made up of $86.048 billion in multifamily loans, $27.113 billion in resident-care loans and $7.066 billion in hospital loans.
