FHA Endorsements Plunged in FY '05

Federal Housing Administration single-family originations fell 44.4% in fiscal year 2005 (which ended Sept. 30), following a 25% drop in fiscal 2004.The federal mortgage insurance program endorsed 555,557 loans in fiscal 2005, down from 998,441 loans in fiscal 2004, according to an "FHA Outlook" report. "This year, virtually all statistical indicators for single family operations declined significantly," the report says. The number of outstanding single-family loans insured by the FHA declined by 12.5%, to 4.48 million loans, in fiscal 2005, following a 9.6% decline in fiscal 2004. In March 2000, the FHA insured 6.8 million single-family loans. As of Sept. 30, outstanding FHA loans totaled $359.3 billion, and the portfolio had a default rate above 6%.