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FHA Delinquency Deteriorates, CRE Business Sinks

FHA News

While there was little month-over-month change in government-insured residential business, commercial production tumbled and delinquency took a turn for the worse.

The first month of calendar-year 2016 saw 93,484 residential loans that were endorsed by the Federal Housing Administration for $18.462 billion.

That was according to a Mortgage Daily analysis of monthly FHA operational data that was released on Tuesday by the Department of Housing and Urban Development.

FHA business barely changed from the final month of last year, when 93,182 loans were endorsed for $18.305 billion.

But endorsements were significantly improved over the first month of last year, when volume totaled 71,478 loans for $13.085 billion.

January 2016 endorsements included
89,426 single-family loans for $17.292 billion, 3,889 home-equity conversion mortgages for $1.166 billion and 169 Title I loans for $0.004 billion.

So far in fiscal-year 2016, which started on Oct. 1, 2015, FHA has endorsed 408,230 loans for $79.899 billion — including 390,617 single-family loans for $75.084 billion, 16,467 HECMs for $4.790 billion and 1,146 Title I loans for $0.025 billion.

Refinance share on single-family business was 30.2 percent during January, off from 31 percent the previous month.

Little change was likely in February 2016
activity based on new single-family and HECM applications, which slipped to 111,989 in January from 114,965 in December 2015.

FHA insurance was in force on 8,438,568 residential loans for $1.2340 trillion as of Jan. 31, 2016.

The book of business grew from 8,421,688 loans for $1.2298 trillion a month earlier and 8,427,841 loans for $1.2244 trillion a year earlier.

The latest total included 7,797,476 single-family loans for $1.0866 trillion, 599,934 HECMs for $0.1464 trillion and 41,158 Title I loans for $0.0010 trillion.

Single-family delinquency of at least 30 days finished January 2016 at 12.67 percent.

The past-due rate worsened from 12.17 percent at the end of 2015 but improved from 13.30 percent at the same point last year — the last time delinquency was this bad.

Reflected in the latest delinquency statistic was a 1.81 percent foreclosure rate and an 0.91 percent bankruptcy rate.

Delinquency of at least 90 days was 5.80 percent.

FHA endorsed
67 commercial real estate loans for $0.851 billion during the most-recent month.

CRE business tumbled from 120 loans endorsed for $1.552 billion in December but increased from 62 loans endorsed for $0.527 billion in January 2015.

January 2016 CRE activity included 53 multifamily loans for $0.693 billion and 14 nursing home loans for $0.158 billion.

Since starting its fiscal-year 2016 on Oct. 1, 2015, FHA has endorsed 405 CRE loans for $4.043 billion.

The fiscal year-to-date figure includes 319 multifamily loans for $2.865 billion, 84 nursing home loans for $0.889 billion and two hospital loans for $0.289 billion.

The latest activity left FHA with insurance in force on 14,079 CRE loans for $105.546 billion.

Outstandings slipped from 14,094 loans for $105.581 billion as of Dec. 31, 2015, but grew from 13,965 loans for $102.359 billion as of Jan. 31, 2015.

Multifamily loans represented 10,773 loans for $74.402 billion of the Jan. 31, 2016, total, while nursing home loans accounted for 3,199 loans for $24.066 billion, and hospital loans made up the remaining 107 loans for $7.078 billion.

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