FHA Insurance Volumes Keep Growing

The Federal Housing Administration insured $29.6 billion in single-family loans in October, a 6.7% gain from October 2008, according to new government figures. FHA insured $328 billion in loans in fiscal year 2009 (which ended Sept. 30) with production averaging $27.3 billion a month. The FHA monthly report shows the government's mortgage insurance agency endorsed nearly 167,100 loans in October. Refinancings comprised 35% of endorsements and 48% of the loans went to first-time homebuyers. Meanwhile, FHA insured $1.9 billion in condominium loans and $2.5 billion in reverse mortgages (Home Equity Conversion Mortgages). As of Oct. 30, FHA's insured single-family mortgage portfolio totaled $716.4 billion with 8.7% of the loans 90 days or more past due. FHA servicers completed 8,100 loan modifications in October, up 40% from a year ago, and 971 short sales, up 130% from a year ago.