More than 530,000 Federal Housing Administration (FHA)-insured mortgages were 90+ days delinquent in December 2009, yielding a serious default rate for the agency of 9.1%. By comparison, 31,741 loans, or about 6.8% of the FHA portfolio, were seriously delinquent in December 2008.
Applications for FHA financing dropped 31.1% to 141,766 in December, FHA adds. Purchase transactions accounted for 74,453 of the transactions, refinances made up 60,387 of the cases and remaining 6,926 applications were reverse mortgage deals.
The refinance transactions covered about 15,000 prior FHA cases and about 45,000 convention mortgage conversions to FHA. Nineteen Hope for Homeowners refinances were included in the transactions.
Total endorsements in December equaled 179,155 – up from November's total of 157,119. The endorsements included 106,137 purchase money mortgages (84% of which were for first-time home buyers), 64,734 refinance transactions (9,916 cash-outs) and 8,284 Home Equity Conversion Mortgages .
SOURCE: Federal Housing Administration