Mortgage bankers originated $23.1 billion of Federal Housing Administration-backed loans in January, a 12.5% decline from the prior month, according to new figures released Thursday.
Meanwhile, the 'seriously delinquent' rate on FHA-backed loans edged up to 8.9% in January from 8.8% in December. The government's mortgage insurer has 612,400 loans that are 90 days or more past due, including loans in bankruptcy and foreclosure.
The origination numbers for both December and January include $1.7 billion of FHA-insured reverse loans also known as 'home equity conversion mortgages.' The January 'FHA Outlook' report shows that the new HECM Saver product is gaining acceptance in the market.
FHA endorsed 165 HECM Savers in January alone. Since the new product was introduced in October, reverse mortgage lenders have closed 259 HECM Savers.
The January report also shows that FHA approved 40 'short' refinances with 142 applications pending on this government sponsored loan modification program. FHA launched this principal reduction effort in September to help underwater borrowers who are current on their conventional mortgage refinance into a new FHA-backed product.
FHA designed the short refi program to streamline and supersede the Hope for Homeowners effort, a principal reduction program which Congress approved in 2008. But in fiscal years 2009 and 2010, FHA approved only 129 H4H refinancings. During the first four months of current fiscal year, FHA endorsed 93 H4H loans.
