FHA Lending Up 169 Percent in First Half of 2009

May 18, 2009 No Comments »

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The Federal Housing Administration saw endorsements rise a whopping 169 percent during the first half of fiscal year 2009, according to NationalMortgageNews.com.

The government agency endorsed $143.9 billion in single-family loans during the six-month period, including $25.4 billion in March alone.

During March, the FHA insured $15.3 billion in refinance loans, and that figure will likely be even higher in April when numbers are released.

As a result, the FHA dominated the mortgage insurance market, taking a 63 percent share, up from 24 percent during the same period a year ago.

Private mortgage insurers, on the other hand, saw their share slip from 69 percent to just 23 percent; VA loans accounted for 13 percent.

Meanwhile, the serious default rate, characterized as loans 90 days or more past due, rose to 7.08 percent as of March 31, with 347,500 loans deep in the red.

The good news is the serious default rate has risen only marginally from last September when it stood at 6.91 percent.

The HUD expects FHA endorsements to total $290 billion in fiscal year 2009, which ends on September 30.

Last week, the FHA announced intentions to make the homebuyer tax credit available for down payment and closing costs, but has since retracted the offer.

It’s unclear if the agency will allow potential homeowners to use the tax credit for such purposes, as the loan program carries a certain tinge of subprime.

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