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Data Shows FHA Mortgage Originations Reduced in September 2008

by Heindrick So
November 2nd, 2008

Mortgage Data Web is a powerful data sourcing company for mortgage origination market share and lender rankings. In one of their FHA reports from January 2008 to September 2008, you can visually see some of the trends we’ve been pointing out here on FHALoanPros recently. 

Earlier this month I asked “Is The FHA Ready For You?” and last week I mentioned how the FHA is taking steps to deal with the recent increase in volume. Well according to their data, the number of FHA mortgage originations grew each month since January, but slowed down during September. Take a look at the graphical chart: 

FHA National Data

Click To Enlarge

Interpreting the Slowdown
It’s definitely too early to conclude anything concrete from this data, but it is something we should definitely be keeping our eye on. Some of the speculation holds the FHA responsible and accounts that they simply can’t handle the tremendous increase in mortgage transactions. With Fannie and Freddie the only other major option for homeowners, not to mention their tougher qualification guidelines compared to FHA, FHA has become a major support for our nation’s housing credit market. It’s been a great year for FHA, but the increase in popularity is still overwhelming compared to what they used to be originating in the past few years. 

While FHA has been accepting changes to increase their ability to process these mortgage transactions, it’s important to pay attention to data like this to see exactly how capable they are. If FHA is expected to shoulder the burden of this credit crisis, the slowdown in origination is definite cause for concern. That being said, we’ll definitely be keeping a close watch on these numbers during the upcoming months.

Additional FHA Data For September 2008
Among the data prepared by Mortgage Data Web, they’ve compiled a Top 100 list of lenders for FHA Government insured mortgages. [only first 5 viewable for non-suscribers] Since FHA loans are not actually issued by the government and only insured by them, it may be interesting to take a look at the list of lenders to get a better idea of who’s funding these mortgages. While the list covers many brand name lenders, the key to finding an FHA loan will be finding an experienced FHA loan originator in your area. As FHA has grown in popularity, there is a plethora of loan originators and lenders offering their FHA services; you can find FHA lenders in your by using our FHA Lender Directory.

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This entry was posted on Sunday, November 2nd, 2008 at 10:52 am and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

One Response to “Data Shows FHA Mortgage Originations Reduced in September 2008”

  1. Angela Says:

    It’s my understanding that the reason FHA applications are down is because all loan applications are down. . . the state of Oregon is unique in that we here have “allot” of small broker shops. . husband and wife teams that would like to help their local clients get a good 30 year fixed rate loan that needs to be FHA. . If you don’t have the net worth of $63,000.00 you can’t help your local client’s. . it doesn’t mean your insolvent!!! If FHA insists that you have a net worth of 63,000.00 for 2 full time originators and a company is INC. and all employees are w-2 what is the problem?? Can’t they see that now small shops are having to turn people away (most of the time repeat or refferals) because they don’t have the FHA lic??? Why doesn’t FHA make a office that has 10 loan originators writing FHA have a $300,000.00 net worth. . . it would seem the liability is more with now LO’S (that once were small broker shops)are being pushed out so the big banks can take part of our paycheck. . and now the consumer is paying an additional 495.00 per file and the net branch manager is making money on “every” loan your closing. . and guess what. . more cost to the borrower!!! Is this what FHA intended????. . and the $63,000.00 net worth in the bank at the time of audit (again, , I say at the “time” of audit. . please go back “now” and check to see if they have it??? I’m so tired of FHA being called the new sub-prime!! A net worth does not make you ethical. . If you have that kind of money just sitting in the bank today unless you got a loan for it or your parents set your business up for you , , you might have been unethical and probly priced your loans with 3 on the back and still doing this with your FHA clients!!! . shame on you FHA!!! Does anyone know if these guide lines are going to change anytime soon!!! Angela@themortgagehouseinc.net

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