FHA Originations Continue to Soar

Federal Housing Administration single-family endorsements totaled $71.7 billion in the first quarter of fiscal year 2009, up 235% from the same period a year ago. Lenders originated $22.8 billion in FHA loans in December alone, compared to $21.4 billion during the three months in the first quarter of FY 2008. The latest data also shows that FHA condominium and 203(k) purchase/improvement loans are growing at a fast clip. Lenders made $3.7 billion in condo loans in the first quarter of FY 2009, up 314% from a year ago and $541.5 million in 203(k) loans, up 255%. The condo and 203(k) loans are included in the $71.7 billion total of FHA single-family loans. Meanwhile, defaults continue to creep up, despite a 24% increase in FHA's portfolio of insurance-in-force over the previous four quarters. FHA loans 90 days or more past due hit 6.8% as of December 31, up from 5.98% in the first quarter of FY 2008.