Last month, the Federal Housing Administration saw its book of business roll past $1 trillion. But originations and delinquency were worse.
Endorsements by the Federal Housing Administration amounted to 91,533 loans for $16.1 billion during July, according to monthly operational data. Business fell from 101,469 endorsements for $17.7 billion the prior month.
FHA endorsements tumbled from 144,514 mortgages for a total of $25.9 billion in July 2010.
It looks like this month’s FHA production might be even lower based on new applications, which fell to 115,263 in July from 131,796 the previous month.
July’s average processing time improved to 6.0 weeks from application to closing versus 6.1 weeks the prior month. Turnaround was also faster than the 6.9 weeks it took to process an FHA loan during the same month in 2010.
Last month’s origination of home-equity conversion mortgages was 5,514 loans for a maximum claim amount of $1.3 billion, off from 5,857 loans for $1.4 billion in June.
Also included in July’s total were 1,925 Section 203(k) loans, 3,607 condominium mortgages and 1,663 loans on manufactured housing.
Since starting its fiscal year on Oct. 1, 2010, FHA has endorsed 1,078,885 mortgages for $202.5 billion. By the end of next month, volume is expected to reach 1.5 million loans for $288.7 billion.
From Jan. 1 through July 31 of this year, 689,202 loans were endorsed for $124.7 billion.
Mortgage insurance was in force on 7,202,951 FHA loans for $1.0032 trillion as of July 31. It was the first time that the $1 trillion threshold was broken. FHA’s book of business was 7,151,199 loans for $0.9946 trillion in June.
FHA delinquency of at least 90 days was 8.3 percent in July, rising from 8.2 percent a month earlier. Late payments on government-insured mortgages were lower, however, than 8.6 percent in July 2010.
FHA delinquency is far higher than on the overall population of home loans.
Based on data from the S&P/Experian Consumer Credit Default Indices, first-mortgage delinquency of at least 90 days on all loans was just 1.93 percent in July.
