Fueled by a jump in purchase transactions, government-insured mortgage production was higher last month. Reverse mortgage volume was higher and is likely to surge this month based on new applications.
The Federal Housing Administration reported that it endorsed 101,469 mortgages for $17.7 billion during June. Activity picked up from 95,907 endorsements for $16.9 billion a month earlier.
But volume was well short of the 150,911 loans endorsed for $26.4 billion in June 2010.
From Jan. 1 to June 30, FHA endorsements amounted to 597,669 loans for $108.6 billion. Since the Department of Housing and Urban Development’s fiscal year began on Oct. 1, 2010, there have been 987,350 loans endorsed for $186.4 billion. By the time its fiscal year ends on Sept. 30, HUDÂ expects production to reach 1.5 million loans for $288.7 billion.
The improvement between May and June came despite that new applications fell to 118,784 in May from April’s 160,186 applications.
Last month’s activity reflected a jump in purchase activity; purchase endorsements climbed to 74,370 loans for $12.5 billion from 66,475 loans endorsed in May for $11.2 billion.
But refinance transactions fell to 21,242 mortgages for $3.8 billion from 24,244 May closings for $4.4 billion.
The origination of home-equity conversion mortgages rose to 5,857 endorsements for $1.4 billion from May’s 5,188 HECMs endorsed for a maximum claim amount of $1.3 billion.
Other FHA activity included Section 203(k) loans, which rose to 2,077 endorsements from 1,759 in May. Condominium closings increased to 4,291 from 3,960, and manufactured-housing volume was up to 1,856 from 1,720.
It looks like overall FHA volume might continue higher based on loan applications, which grew to 131,796 in June from the previous month’s 118,784. Purchase applications were up 10 percent, while applications for refinances rose 13 percent and HECM applications jumped 17 percent.
HUD said that 7,151,199 FHA loans were outstanding for $994.6 billion as of June 30, growing from 7,090,489 loans for $984.6 billion.
Delinquency of at least 90 days on the FHA book of business was unchanged at 8.20 percent. But defaults were lower than June 2010, when the rate was 8.6 percent.
