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FHA November Business Slides, Delinquency Jumps

FHA News

Loan delinquency worsened on government-insured loans, as did monthly originations. But new business has more recently moved up as mortgage insurance premiums moved down.

Residential loans endorsed by the Federal Housing Administration during November totaled 63,156 units for $11.290 billion, according to an analysis of operational data provided by the Department of Housing and Urban Development.

Activity included $10.077 billion in single-family loans, $1.204 billion in home-equity conversion mortgages and $0.009 billion in Title I loans.

Overall government mortgage business slid from the previous month, when 81,021 loans were endorsed for $14.431 billion. The decline came primarily from single-family business, which sank by nearly a quarter compared to October.

There was little change compared to November 2013, when a total of 66,666 loans were endorsed for $11.804 billion.

December 2014 likely saw a further decline in new activity based on total applications, which tumbled to 81,286 in November from the previous month’s 101,678 applications.

But data collected for the Mortgage Market Index indicate that product-and-pricing inquiries for FHA-insured mortgages have more recently surged as lower FHA mortgage insurance premiums took effect on Jan. 26.

Since starting its fiscal-year 2015 on Oct. 1, 2014, FHA has endorsed 144,177 loans for $28.721 billion.

During the 11 months ended Nov. 31, 2014, there were 764,786 endorsements for $134.896 billion.

FHA insurance was in force on
8,435,034 loans for $1.2279 trillion as of Nov. 30, 2014. The government book of business slumped from Oct. 31, when insurance was in force on 8,450,688 loans for $1.2318 trillion.

As of Nov. 30, 2013, the total in force was 8,484,809 loans
for $1.2456 trillion.

The total in force reflected $1.0778 trillion in single-family loans, $0.1490 trillion in HECMs and $0.0010 trillion in Title I loans.

The single-family 30-day delinquency rate jumped to 13.90 percent from 12.98 percent in October.

The rate, however, remains better than 14.82 percent in November 2013.

Included in the SFR rate was a 2.15 percent foreclosure rate and an 0.99 percent bankruptcy rate.

November 2014’s 90-day rate was 7.02 percent.

FHA additionally endorsed 102 commercial real estate loans for $0.872 billion during November. The total included $0.646 billion in multifamily loans and $0.226 billion in nursing homes.

CRE business
tumbled from 110 loans for $1.115 billion the prior month. All of the slowdown was in multifamily lending.

In the same month during 2013, FHA endorsed 104 CRE loans for $1.013 billion.

Fiscal-year-to-date 2015
activity amounts to 212 loans for $1.987 billion, while calendar-year 2014 has so far seen 1,365 CRE loans endorsed for $12.777 billion.

Insurance was in force on 13,938 CRE loans for $0.1019 trillion — including $0.0706 trillion in multifamily loans, $0.0232 trillion in nursing home loans and $0.0081 trillion in hospital loans.

Total in force was
up from 13,906 loans insured for $0.1017 trillion a month earlier and 13,433 FHA commercial mortgages for $0.0945 trillion a year earlier.

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