Magazine article American Banker

Will FHA's Auditors Have Good News in November?

Magazine article American Banker

Will FHA's Auditors Have Good News in November?

Article excerpt

Byline: Brian Collins

WASHINGTON -- Strong home sales are boosting originations of Federal Housing Administration loans and opening the door for first-time buyers. The strong loan volume could also portend the federal mortgage insurance agency is in line to receive a positive report from its auditors this fall.

The FHA endorsed 895,713 single-family loans during the first three quarters of fiscal year 2016, up 21.6% from the same period last year ending June 30, 2015. And most of the mortgages are home purchase loans.

The latest FHA Production Report shows lenders originated 622,757 purchase mortgages during the first three quarters of fiscal year 2016, compared to 486,139 purchase loans during the same period in FY 2015.

First-time buyers received roughly 82% of FHA purchase mortgages in both three-quarter time periods.

Meanwhile, the June FHA Performance Report shows a significant drop in the serious delinquency rate over the past four quarters. The percentage of loans 90 days or more past due fell to 5.02% as of June 30, down from 6.12% a year ago.

"It certainly looks positive for the 2016 actuarial review of the FHA mortgage insurance fund," said Brian Chappelle, a co-founder of the consulting firm Potomac Partners.

Independent auditors are expected to release the next actuarial report in November.

The results from last November's actuarial report showed the FHA's ratio of reserves to guaranteed loans exceeded its minimum 2% threshold for the first time since 2008. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.