FHA Originations Projected to Decline 16% in FY 2012

Mortgage bankers are expected to write $322 billion worth of FHA-backed loans in the coming fiscal year, according to updated budget projections made by the Department of Housing and Urban Development.

Of the $322 billion, roughly $218 billion is expected to be in the form of "forward" FHA single-family loans, $84 billion in refinancings, and $20 billion of reverse mortgages. (A forward loan is another name for a purchase money mortgage.)

For the current fiscal year FHA is on track to insure $385 billion of loans.

 (On Monday, National Mortgage News reported that just $218 billion of FHA loans might be written in FY 2012, but HUD later clarified its estimates.)