Monthly Federal Housing Administration originations turned lower and could see a further decline — though reverse mortgage volume will likely rise. Loan delinquency worsened.
During August, FHA endorsed 75,892 loans for $13.378 billion, according to operational data released by the Department of Housing and Urban Development.
Activity slowed from the previous month, when 79,479 loans were endorsed for $14.055 billion.
Production also dropped off from August 2013, when endorsements were 103,749 loans for $18.115 billion.
In the eight months ended Aug. 31, endorsements amounted to 543,611 loans for $95.587 billion.
Since beginning its fiscal-year 2014 on Oct. 1, 2013, FHA volume totaled 766,630 loans for $134.792 billion.
August 2014 endorsements included 72,139 single-family loans for $12.519 billion, 3,250 home-equity conversion mortgages for $0.850 billion and 503 Title I loans for $0.009 billion.
FHA business is set to see a further decline based on new applications, which dropped to 89,221 from 97,881 in July.
However, the HECM portion of applications surged to 11,413 in August from just 5,823 the previous month — pointing to higher activity in subsequent months.
FHA insurance was in force on 8,455,725 loans for $1.2343 trillion as of Aug. 31, off from 8,459,441 loans for $1.2357 trillion a month earlier.
A year earlier, FHA’s book stood at 8,468,981 loans for $1.2440 trillion.
The most recent total was comprised of $1.0841 trillion in single-family loans, $0.1492 trillion in HECMs and $0.0010 trillion in Title I loans.
HUDÂ reported that delinquency of at least 30 days was 13.49 percent, worsening from 12.95 percent the previous month but better than 14.27 percent as of Aug. 31, 2013.
The latest delinquency level reflected a 2.14 percent foreclosure rate and an 0.99 percent bankruptcy rate.
FHA also endorsed 107 commercial real estate loans for $0.982 billion, less than the 109 loans endorsed for $1.032 billion in July.
August endorsements consisted of $0.656 billion in multifamily loans and $0.326 billion in nursing home mortgages.
CRE activity so far during calendar-year 2014 was 988 loans for $9.371 billion, while fiscal-year 2014 volume totaled 1,405 loans for $13.756 billion.
FHA’s CRE book grew to 13,789 loans for $100.360 billion from 13,786 loans for $100.210 billion as of July 31.
The Aug. 31 total included $69.232 billion in multifamily loans, $22.578 billion in nursing home mortgages and $8.550 billion in hospital loans.
