Monthly business for government-insured mortgage lending turned sharply lower. At the same time, delinquency on government-insured loans worsened.
The Federal Housing Administration endorsed 97,705 residential loans in November for $18.899 billion.
The findings were determined through a Mortgage Daily analysis of operational data released by the Department of Housing and Urban Development.
November’s endorsements consisted of $17.760 billion in single-family loans, $1.132 billion
in home-equity conversion mortgages and $0.007 billion in Title I loans.
Overall FHA business tumbled compared to October, when 123,854 loans were endorsed for $24.233 billion.
But FHA originations were solidly higher than in November 2014, when
just 63,156 loans were endorsed for $11.290 billion.
During the first 11 months to elapse in calendar-year 2015, FHA endorsed 1,183,721 residential loans for $232.599 billion.
Since starting fiscal-year 2016 on Oct. 1, 2015, FHA has endorsed 221,560 loans for $43.132 billion.
Refinances accounted for 30.1 percent of the latest month’s endorsements. Refinance share widened from 29.4 percent in October.
December 2015 endorsements will likely be slower based on new FHA loan applications, which fell to 119,747 in November 2015 from 134,581 one month earlier.
FHA insurance was in force on 8,424,800 residential loans for $1.2293 trillion as of Dec. 31, 2015.
FHA’s book grew from 8,410,847 loans for $1.2261 trillion a month earlier and 8,435,034 loans for $1.2279 trillion a year earlier.
The most-recent total was comprised of $1.0818 trillion in single-family loans, $0.1465 trillion in HECMs and $0.0010 trillion in Title I loans.
HUD data indicate that single-family delinquency of at least 30
days, including foreclosures and bankruptcies, deteriorated to 12.27 percent from 12.09 percent,t as of Oct. 31.
But delinquency has been cut from 13.90 percent as of Nov. 30, 2014.
Ninety-day delinquency was 5.82 percent as of Nov. 30, 2015.
FHA reported that 66 commercial real estate loans were endorsed for $0.610 billion during November 2015.
CRE originations slowed from 105 loans endorsed for $1.030 billion in October and 103 loans for $0.872 billion in November 2014.
Calendar year-to-date Nov. 30 CRE volume stands at
983 endorsements for $8.120 billion.
So far during fiscal-year 2016, FHA has endorsed 171 CRE loans for $1.640 billion.
Multifamily loans accounted for 52 endorsements for $0.463 billion during November 2015.
FHA announced
Thursday a multifamily insurance rate reduction planned for April 1. The cut in M.I. premiums is designed to encourage capital financing of affordable and energy-efficient apartments.
Another 14 nursing home loans for $0.147 billion were also endorsed by FHA during November 2015.
FHA insurance was in force on 14,041 CRE loans for $105.443 billion as of the close of November 2015.
FHA’s CRE book was trimmed from 14,068 loans for $105.500 billion as of Oct. 31, 2015, but greater than 13,938 loans insured for $101.920 billion as of Nov. 30, 2014.
The Nov. 30, 2015, CRE book consisted of $73.997 billion in multifamily loans, $24.021 billion in nursing home loans and $7.425 billion in hospital loans.
