Government-insured originations improved last month, though volume is likely to turn lower this month. Reverse mortgage activity improved for the first time in six months, and overall delinquency continued lower.
The Federal Housing Administration reported that it endorsed 150,911 loans last month for $26.4 billion, increasing from 124,754 endorsements for $22.3 billion in May. Business was down, however, from 194,526 mortgages for $36.8 billion in June 2009.
The average FICO score edged down in June to 697 from 698 the month before.
Last month’s activity included 115,831 purchase transactions for $19.6 billion and 29,776 refinances for $5.5 billion. The month-over-month increase was fueled by purchases, as refinance endorsements eased from May.
Also included in June volume were 5,304 home-equity conversion mortgages for a maximum claim amount of $1.3 billion — improving for the first time since December 2009 when 8,284 HECMs were closed for $2.3 billion. Reverse mortgage volume was 4,554 transactions for $1.2 billion in May and 8,633 endorsements for $2.6 billion in June 2009.
Section 203(k) volume rose to 1,845 endorsements from May’s 1,574, while condominium loans endorsed improved to 7,638 from 5,942,
The monthly improvement in overall activity was likely temporary based on new applications, which fell to 168,915 last month from May’s 181,524. But the decline in applications was limited to purchase transactions, which tumbled more than a quarter, and likely reflected the impact from the expiring tax credit. Refinance applications jumped more than a third, while HECM applications were 9 percent higher.
The average processing time from application to closing worsened to 7.1 weeks from 6.6 weeks in May.
So far this fiscal year, 1,337,230 FHA loans have been endorsed for $242.6 billion, near the same level at the same point last year — when 1,387,201 loans had been endorsed for $256.5 billion. By the end of the current fiscal year on Sept. 30, the housing agency projects 1,875,000 loans for $349.7 billion will have been endorsed.
As of June 30, there were 6,402,527 FHA-insured mortgages outstanding for $865.5 billion, more than 6,296,586 loans for $837.8 billion at the end of the previous month.
Delinquency of at least 90 days finished June at 8.3 percent, down for the fifth consecutive month. The rate was 8.4 percent a month earlier and 7.6 percent a year earlier.
