Residential lenders originated $16.5 billion of FHA-backed single-family mortgages in February, a nearly 10% decline from the prior month as the home purchase market slowed.
According to new figures released by HUD, lenders funded $8.4 billion of FHA-backed purchase money loans, and $6.8 billion of refinancings.
Refinancings were unchanged from January to February while purchase activity fell 18%.
Lenders also originated $1.3 billion of reverse mortgages in February, also known as home equity conversion mortgages or HECMs.
HECM fundings fell 20% during the first five months of fiscal year 2012 (which started Oct. 1), compared to the same period in FY 2011.
HECM loss claims – the byproduct of seniors failing to pay property taxes and insurance -- totaled 4,800 for the first five months of FY 2012, up 80% from the year ago period.
Meanwhile, the serious delinquency rate on FHA-insured single family loans has been rising for several months -- hitting 9.8% in January. The new report says the percentage of FHA-insured loans 90-days or more past due edged down to 9.7% in February.
“This decline was expected and followed the usual seasonal pattern,” FHA said.
