The FHA’s total delinquency rate (30 days or more past due) has dropped by over 300 basis points since December 2011 to 14.68% as of April 30, according to new Federal Housing Administration data.
And the serious delinquency rate (90 days or more past due) on FHA single-family loans fell 69 basis points during the first four months this year to 8.73% as of April 30.
“These are encouraging trends,” said mortgage consultant Brian Chappelle.
The sudden 69 basis point drop in the
But the improvement is also due to the higher credit quality of FHA loan originations since 2009 and the addition of 400,460 loans to FHA’s portfolio since December 2011.
“I do not believe that Washington policymakers fully appreciate the impact of the excellent credit quality (since mid-2009) on FHA's performance and financial condition,” Chappelle said.
“Barring an unforeseen economic downturn, the numbers should only get better in the coming months,” he said. Chappelle is a co-founder of Potomac Partners.
