FHA Loan Originations Tripling in FY'08

Lenders originated $156.5 billion in FHA single-family loans in the first 11 months of fiscal year 2008, nearly triple the total for all of fiscal 2007, according to Department of Housing and Urban Development data. The HUD numbers show that FHA loan production accelerated in the spring and the summer. In July and August, lenders originated $47.9 billion in FHA loans, nearly topping the $54.3 billion originated over the previous three months. The FHA surge is also boosting the issuance of Ginnie Mae mortgage-backed securities. In July, Ginnie's single-family MBS issuance totaled $25.8 billion, which exceeded Freddie Mac's MBS issuance by $4 billion. In August, FHA lenders originated $24.4 billion in single-family loans and Ginnie guaranteed $28.8 billion in MBS. The Department of Veterans Affairs guarantee loan program is also kicking in. Lenders originated $8.2 billion in VA loans in July and August, compared with $10.4 during the previous three months.