FHA Originations Double

Lenders originated nearly 1.1 million Federal Housing Administration loans in fiscal year 2008 (which ended Sept. 30), more than double the 425,000 loans endorsed by FHA in the previous fiscal year, according to housing commissioner Brian Montgomery. The Department of Housing and Urban Development is projecting FHA single-family originations will hit 1.4 million loans in FY 2009. "Those are really encouraging numbers and it shows that FHA is not only back in the game but at the forefront of the housing market these days," Mr. Montgomery told a HUD sponsored housing summit. The FHA Secure program accounted for 375,000 of FHA endorsements in FY 2008. FHA Secure is designed to help subprime borrowers to refinance into safer, less expensive FHA loans. FHA purchase mortgage originations totaled 632,000 in FY 2008.