Purchase Apps Lose Ground At FHA

Posted by Orb Staff on June 22, 2010 No Comments
Categories : Residential Mortgage

are of purchase applications submitted to the Federal Housing Administration (FHA) dropped sharply last month, the federal insurer reports in its single-family operations outlook report. During the first week of May, three-quarters of applications were for a home purchase. By the end of the month, purchase applications fell to slightly more than half of the daily application receipts. In total, the agency received 181,534 applications in May, including 121,035 purchase applications, 52,135 refinance transactions and 8,354 reverse mortgage applications. Nearly 125,000 mortgages were endorsed for insurance – down slightly from the 126,316 mortgages endorsed in April. The seriously delinquent (90+ day) rate held fairly steady, falling from 8.5% in April to 8.4% in May. The actual number of loans in the 90+ day bucket grew month over month from 527,504 to 530,140. Over the first eight months of the fiscal year, the FHA has paid 63,019 property conveyance claims (i.e., foreclosures) and 177,300 total claims. Most of the difference between the two claims numbers represents loss mitigation default workout actions, the agency says, adding that FHA has also paid more than 9,000 short-sale claims. SOURCE: [link=http://www.hud.gov/offices/hsg/comp/rpts/ooe/olcurr.pdf]U.S. Department of Housing and Urban Development

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