FHA Volume Doubled in 3 Months

Federal Housing Administration single-family mortgage originations took off in the first three months of this year, as FHA applications doubled to 181,900 between Dec. 31 and the end of March, according to Department of Housing and Development data. The data also show that FHA-insured loans jumped by 64%, to 89,000, from December to March. Mortgage banking consultant Brian Chappelle estimates that FHA lenders are now taking 200,000 FHA mortgage applications per month and insuring 100,000 loans per month. There are concerns that the FHA might not be able to handle the increase in business. But Mr. Chappelle said the FHA direct-endorsement lenders manage the whole approval process. From an origination standpoint, "there are no backlogs because the lender controls the process," he said. Mr. Chappelle is with Potomac Partners in Washington.