FHA Shows Huge Activity Increase

by Peter G. Miller
July 24th, 2007

Story Tools

Figures from the end of June show that the market for FHA loan products is booming.

*Applications maintained a strong annual rate — 820,700. That’s up 21.4 percent over last year.

*Loan originations are up 5.8 percent over last year.

*A lot of people applying for FHA loans are not qualifying — on an annualized basis, there were 820,700 loan applications but only 591,400 originations.

*With respect to refinanced mortgages, the big change is in the number of cases requiring full underwriting because of the very sharp rise in cash out transactions — most coming from former conventional mortgages.

By the usual standards of cash and commerce it would seem that the FHA program — even without “modernization” — is doing very well at a time when real estate activity nationwide is slowing down.

This entry was posted on Tuesday, July 24th, 2007 at 1:28 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.