FHA Originations Dip 10% in Month

Mortgage bankers originated $26.9 billion of Federal Housing Administration-backed single-family loans in January, a 10% decline from the previous month, according to a new government report. Refinancings totaled $11.5 billion and comprised 40% of January originations. FHA originations per month have been ranging between $26 billion and $30 billion over the previous five months. Meanwhile, FHA's serious delinquency rate continues to rise. The percentage of FHA loans 90 days or more past due hit 9.4% in January, up from 9.12% the previous month. FHA servicers have foreclosed on 28,000 homes from October 2009 through January 2010, up 42% from the same period a year ago. Short sales totaled 4,000 during that four-month period, up 132% from a year ago.