FHA SINGLE-FAMILY OUTLOOK

SINGLE-FAMILY OPERATIONS
May 2012
CONTACT INFORMATION
WILLIAM F. SHAW 202-402-7550
ZENORA HINES 202-402-7544

Applications
The total number of single family insurance applications received by FHA during May was 124,125 -- 4.5 percent more
than in the year-earlier period (118,784). The new total includes 82,726 home purchase loans, 34,407 refinance actions,
and 6,992 reverse mortgage applications.
The refinance count included 16,680 prior FHA cases and 17,727 conventional mortgages seeking to convert to FHA
insurance. There are 204 short refinance applications in the conventional count.

Endorsements
During May, FHA insured 114,008 single family mortgages with $21.3 billion in loan balances. The loan count is 4.6
percent higher than in April.
Included in this total were 66,220 home purchase mortgages, 43,349 refinance transactions, and 4,439 HECM loans.
First time home buyers accounted for 78.5 percent of the home purchase loans; 30.9 percent of those home buyers were
minority households.
Refinance transactions accounted for 38 percent of May endorsements and, of those, 30,006 were prior FHA cases of
which 25,108 were handled using streamline procedures.
Conventional conversions accounted for 13,343 endorsement actions, and of those 3,590 were cash outs. There were
also 740 prior-FHA cash-out transactions and 107 short refinance endorsements.

Insurance-in-Force
At the end of May, FHA had 7,633,037 single family mortgages-in-force with a balance of almost $1.1 trillion.

Of Interest
So far this fiscal year, FHA has received 1,134,137 single family applications---4.6% higher than for the same time last
year (1,084,770). Also, the average FICO score on new endorsements has been 699 for four months straight. Though
FICO scores for home buyers have only fluctuated by one point throughout this fiscal yearmoving between 695 and
696those for refinance borrowers have risen since October and, in the last four months, have reached historic highs
(708, 710, 712, and 711).
This month FHA insured 1,635 ARM's -- last month 1,448 were insured. FHA also insured 4,002 condominium units and
1,630 manufactured housing mortgages.

Defaults and Claims

At the end of May, servicers reported 713,104 FHA mortgages in serious delinquency (90+ days or in bankruptcy or
foreclosure) yielding a serious delinquency rate of 9.4 percent -- the same as last month.

So far this fiscal year, FHA has paid 178,110 single family claims. This total is 21.4 percent lower than the year-to-date
count seen in FY 2011. The decline is confined to loss mitigation claims, which are down 47 percent (77,512 versus
145,479). Conveyance claims for FY 2012 are now greater than at this point in FY 2011 (67,557 vs. 61,474) as a result
of higher March - May activity, and following the National Mortgage Settlement. Pre-foreclosure sale claims have been
higher in each month of FY 2012 than they were in FY 2011, so that year-to-date activity is up 78 percent (23,977 vs.
13,502). In addition, there have been 7,719 HECM claims paid and 1,345 other claim actions in this fiscal year.

Department of Housing and Urban Development, Housing - Deputy Assistant Secretary for Risk Management and Regulatory Affairs, Office of Evaluation

Page 1 of 5

FHA SINGLE-FAMILY OUTLOOK

SINGLE-FAMILY OPERATIONS
May 2012
MONTHLY COMPARISONS

TOTAL APPLICATIONS: *
Annual Rate
Average per workday
Purchase
Refinance
Prior FHA
Conventional to FHA
H4H (HOPE for Homeowners)
Short Refinance
HECM
TOTAL ENDORSEMENTS: *
Annual Rate
Weighted Average FICO Score **
Minority
% Minority
Purchase
% Purchase
Average FICO Score **
1st Time Home Buyer
% 1st Time Home Buyer
Non-Minority
% Non-Minority
Minority
% Minority
Not-Disclosed
% Not-Disclosed
Refinanced
% Refinanced
Average FICO Score **
Prior FHA
Streamline
% Streamline
Full Process
Cash Out
Conventional to FHA
Cash Out
Total Cash Out
Total % Cash Out
H4H (HOPE for Homeowners)
Short Refinance
HECM
% HECM
HECM Standard Traditional
HECM Stndrd Traditional ARM
HECM Standard Purchase
HECM Stndrd Purchase ARM
HECM Standard Refinance
% HECM Standard Refinance
HECM Stndrd Refinance ARM
HECM Saver Total

CURRENT
MONTH

LAST
MONTH

RATE OF
CHANGE

LAST
YEAR

RATE OF
CHANGE

124,125
1,199,500
4,741
82,726
34,407
16,680
17,727

156,453
1,215,700
4,805
88,121
61,824
33,807
28,017

-20.7%
-1.3%
-1.3%
-6.1%
-44.3%
-50.7%
-36.7%

4.5%
-6.9%
-6.9%
3.5%
9.6%
61.8%
-15.9%

204
6,992
114,008
1,368,100
699
28,005
24.6%
66,220
58.1%
695
52,000
78.5%
32,902
63.3%
16,046
30.9%
3,052
5.9%
43,349
38.0%
711
30,006
25,108
57.9%
4,898
740
13,343
3,590
4,330
10.0%

249
6,508
108,954
1,307,400
699
26,308
24.1%
58,716
53.9%
695
45,975
78.3%
28,979
63.0%
14,446
31.4%
2,549
5.5%
45,643
41.9%
712
32,285
27,260
59.7%
5,025
638
13,360
3,322
3,960
8.7%

-18.1%
7.4%
4.6%
4.6%
0.0%
6.5%
0.4%
12.8%
4.2%
0.0%
13.1%
0.2%
13.5%
0.2%
11.1%
-0.6%
19.7%
0.3%
-5.0%
-3.9%
-0.1%
-7.1%
-7.9%
-1.8%
-2.5%
16.0%
-0.1%
8.1%
9.3%
1.3%

107
4,439
3.9%
3,866
1,090
132
2
90
2.0%
28
351

210
4,595
4.2%
3,956
1,094
153
4
138
3.0%
32
348

118,784
1,288,100
5,091
79,931
31,380
10,308
21,072
134
65
7,473
95,907
1,150,900
701
23,677
24.7%
66,475
69.3%
700
51,236
77.1%
32,704
63.8%
15,451
30.2%
3,081
6.0%
24,244
25.3%
701
10,315
7,658
31.6%
2,657
611
13,929
4,026
4,637
19.1%
39
44
5,188
5.4%
4,587
1,019
96
3
140
2.7%
20
365

Source: * F17 CHUMS

# - Percentage point difference
** This series represents the composite FICO score value that is used for loan underwriting.

#
#

#
#
#
#
#

-49.0%
-3.4%
-0.3% #
-2.3%
-0.4%
-13.7%
-50.0%
-34.8%
-1.0% #
-12.5%
0.9%

213.8%
-6.4%
18.9%
18.9%
-0.3%
18.3%
-0.1%
-0.4%
-11.2%
-0.7%
1.5%
1.5%
0.6%
-0.6%
3.9%
0.7%
-0.9%
-0.1%
78.8%
12.7%
1.4%
190.9%
227.9%
26.3%
84.3%
21.1%
-4.2%
-10.8%
-6.6%
-9.1%

#
#
#
#
#

143.2%
-14.4%
-1.5% #
-15.7%
7.0%
37.5%
-33.3%
-35.7%
-0.7% #
40.0%
-3.8%

NA - Not available at this time.

Department of Housing and Urban Development, Housing - Deputy Assistant Secretary for Risk Management and Regulatory Affairs, Office of Evaluation

Page 2 of 5

FHA SINGLE-FAMILY OUTLOOK

SINGLE-FAMILY OPERATIONS
May 2012
MONTHLY COMPARISONS
CURRENT
MONTH

LAST
MONTH

1,725
4,002
3.5%
1,635
1.4%
1,630
345

1,798
3,952
3.6%
1,448
1.3%
1,523
363

6.4
3.4

5.9
3.3

Lender Insurance *
Total Lender Insurance
% of Total Insurance
Forward Mortgages
HECM

90,457
79.3%
90,457
0

86,267
79.2%
86,267
0

4.9%
0.2% #
4.9%

74,208
77.4%
73,070
1,138

21.9%
2.0% #
23.8%

Automated Underwriting System * x

AUS Endorsed
AUS as % of Total Endorsed

81,836
74.7%

74,530
71.4%

9.8%
3.3% #

81,347
89.7%

0.6%
-15.0% #

114,008
$21.3

108,954
$20.3

4.6%
4.9%

95,907
$16.9

18.9%
26.0%

109,569
$20.2
66,220
$11.3
43,349
$8.9

104,359
$19.2
58,716
$9.9
45,643
$9.3

5.0%
5.2%
12.8%
14.1%
-5.0%
-4.3%

90,719
$15.6
66,475
$11.2
24,244
$4.4

20.8%
29.5%
-0.4%
0.9%
78.8%
102.3%

4,439
$1.1

4,595
$1.1

-3.4%
0.0%

5,188
$1.3

-14.4%
-15.4%

7,633,037
$1,070.6

7,549,568
$1,057.0

1.1%
1.3%

7,090,489
$984.6

7.7%
8.7%

713,104
9.4%

707,330
9.4%

FORWARD ENDORSEMENTS ONLY: *

Section 203(k)
Condominium
% Condominium
ARM (Excludes HECM ARM)
% ARM
Manufactured Housing (Real Estate)
Interest Buy-down
Average Processing Time * ^
(Existing Homes, weeks)
Application to Closing
Closing to Endorsement

RATE OF
CHANGE

LAST
YEAR

-4.1%
1.3%
-0.1% #
12.9%
0.1% #
7.0%
-5.0%

1,759
3,960
4.1%
4,194
4.4%
1,720
328

8.5%
3.0%

6.0
3.0

RATE OF
CHANGE

-1.9%
1.1%
-0.6% #
-61.0%
-2.9% #
-5.2%
5.2%

6.7%
13.3%

Mortgage Insurance *
Total Number
Total Amount ($B)
Forward Mortgages
Total Forward Number
Amount ($B)
Purchase Number
Amount ($B)
Refinance Number
Amount ($B)
Reverse Mortgages
HECM Number
Max Claim Amount ($B)

Mortgage Insurance-In-Force **
Total Number
Total Unpaid Balance Amount ($B)

Loans Seriously Delinquent *** <

Seriously Delinquent
Seriously Delinquent Rate

Source:

* F17 CHUMS

** A43 Single Family Insurance System

0.8%
0.0% #

578,933
8.2%

23.2%
1.2% #

*** F42D Consolidated Single Family Default Monitoring System

#
^

Percentage point difference

Existing homes, including purchase and refinance cases, represent virtually all of insurance activity.

AUS includes only forward mortgages accepted and endorsed by the FHA scorecard (TOTAL).

<

This count of seriously delinquent mortgages includes all bankruptcies, all foreclosures and 90 days or more delinquencies.

Department of Housing and Urban Development, Housing - Deputy Assistant Secretary for Risk Management and Regulatory Affairs, Office of Evaluation

Page 3 of 5

FHA SINGLE-FAMILY OUTLOOK

SINGLE-FAMILY OPERATIONS
May 2012
FISCAL YEAR COMPARISONS
PROJECTIONS
FY 2012
AS OF OCT 11

FY 2012
TO DATE

FY 2011
TO DATE

RATE OF
CHANGE
2012/2011

FY 2011
FINAL

1,750,000

1,134,137

1,084,770

4.6%

1,603,669

1,015,000
630,000
252,000
378,000

620,588
459,462
263,115
196,347

3.4%
9.2%
52.7%
-20.9%

105,000

2,005
54,087

600,141
420,666
172,342
248,324
1,098
535
63,963

-15.4%

921,886
586,092
247,124
338,968
1,408
1,333
95,691

1,400,000

786,341

886,087

-11.3%

1,271,211

Minority
% Minority

350,000
25.0%

198,780
25.3%

212,278
24.0%

-6.4%
1.3% #

312,940
24.6%

Purchase
% Purchase
1st Time Home Buyer
% 1st Time Home Buyer
Non-Minority
% Non-Minority
Minority
% Minority
Not-Disclosed
% Not-Disclosed

840,000
60.0%
630,000
75.0%
403,200
64.0%
189,000
30.0%
37,800
6.0%

467,340
59.4%
361,443
77.3%
222,174
61.5%
117,857
32.6%
21,435
5.9%

492,481
55.6%
367,257
74.6%
225,327
61.4%
118,247
32.2%
23,703
6.5%

-5.1%
3.9%
-1.6%
2.8%
-1.4%
0.1%
-0.3%
0.4%
-9.6%
-0.5%

777,521
61.2%
585,091
75.3%
360,891
61.7%
187,022
32.0%
37,176
6.4%

Refinanced
% Refinanced
Prior FHA
Streamline
% Streamline
Full Process
Cash Out
Conventional to FHA
Cash Out
Total Cash Out
Total % Cash Out
H4H (HOPE for Homeowners)
Short Refinance
HECM
% HECM
HECM Standard Traditional
HECM Stndrd Traditional ARM
HECM Standard Purchase
HECM Stndrd Purchase ARM
HECM Standard Refinance
% HECM Standard Refinance
HECM Stndrd Refinance ARM
HECM Saver Total

476,000
34.0%
247,520
223,720
47.0%
23,800
7,200
228,480
36,000
43,200
9.1%

281,047
35.7%
185,913
151,280
53.8%
34,560
5,205
95,215
25,397
30,602
10.9%
2
968
37,954
4.8%
33,232
9,371
1,047
37
976
2.6%
312
2,699

343,232
38.7%
190,311
155,591
45.3%
34,720
6,722
152,952
40,200
46,922
13.7%
227
195
50,375
5.7%
45,618
14,697
906
93
2,131
4.2%
468
1,721

TOTAL APPLICATIONS: *
Purchase
Refinance
Prior FHA
Conventional to FHA
H4H (HOPE for Homeowners)
Short Refinance
HECM
TOTAL ENDORSEMENTS: *

Source:

* F17 CHUMS

84,000
6.0%
75,000
22,500
1,700
500
3,000
3.6%
660
4,300

#
#
#
#
#

-18.1%
-3.0% #
-2.3%
-2.8%
8.5% #
-0.5%
-22.6%
-37.7%
-36.8%
-34.8%
-2.8% #

-24.7%
-0.9% #
-27.2%
-36.2%
15.6%
-60.2%
-54.2%
-1.7% #
-33.3%
56.8%

420,561
33.1%
224,936
180,330
42.9%
44,606
9,022
195,634
52,921
61,943
14.7%
632
334
73,129
5.8%
65,062
19,429
1,514
112
2,727
3.7%
565
3,828

# - Percentage point difference

Department of Housing and Urban Development, Housing - Deputy Assistant Secretary for Risk Management and Regulatory Affairs, Office of Evaluation

Page 4 of 5

FHA SINGLE-FAMILY OUTLOOK

SINGLE-FAMILY OPERATIONS
May 2012
FISCAL YEAR COMPARISONS
PROJECTIONS
FY 2012
AS OF OCT 11

RATE OF
CHANGE
2012/2011

FY 2012
TO DATE

FY 2011
TO DATE

FY 2011
FINAL

22,000
110,000
7.9%
50,000
3.6%
50,000
4,000

15,022
27,592
3.5%
16,068
2.0%
10,066
2,947

12,838
39,997
4.5%
35,395
4.0%
14,354
2,106

17.0%
-31.0%
-1.0% #
-54.6%
-2.0% #
-29.9%
39.9%

21,297
54,694
4.3%
50,882
4.0%
21,378
3,790

980,000
70.0%
960,400
19,600

614,283
78.1%
613,474
809

675,384
76.2%
662,209
13,175

-9.0%
1.9% #
-7.4%
-93.9%

976,312
76.8%
956,514
19,798

1,050,000
79.8%

576,964
77.1%

668,599
80.0%

-13.7%
-2.9% #

994,574
83.0%

1,400,000
$248.6

786,341
$143.3

886,087
$168.5

-11.3%
-15.0%

1,271,211
$236.0

1,316,000
$231.1
840,000
$141.9
476,000
$89.2

748,387
$134.1
467,340
$78.2
281,047
$55.9

835,713
$155.8
492,481
$86.3
343,232
$69.5

-10.4%
-13.9%
-5.1%
-9.4%
-18.1%
-19.6%

1,198,082
$217.8
777,521
$134.4
420,561
$83.4

84,000
$17.5

37,954
$9.2

50,374
$12.7

-24.7%
-27.6%

73,129
$18.2

318,500
195,000
25,400
92,000
5,000
1,100

178,110
77,512
23,977
67,557
7,719
1,345

226,671
145,479
13,502
61,474
5,128
1,088

-21.4%
-46.7%
77.6%
9.9%
50.5%
23.6%

326,892
200,808
25,069
91,448
7,951
1,616

FORWARD ENDORSEMENTS ONLY: *

Section 203(k)
Condominium
% Condominium
ARM (Excludes HECM ARM)
% ARM
Manufactured Housing (Real Estate)
Interest Buy-down
Lender Insurance *
Total Lender Insurance
% of Total Insurance
Forward Mortgages
HECM
Automated Underwriting System * x
AUS Endorsed
AUS as % of Total Endorsed
Mortgage Insurance *
Total Number
Total Amount ($B)
Forward Mortgages
Total Forward Number
Amount ($B)
Purchase Number
Amount ($B)
Refinance Number
Amount ($B)
Reverse Mortgages
HECM Number
Max Claim Amount ($B)

Claims **
Total Claims
Loss Mitigation Retention
Pre-Foreclosures
Conveyances
HECM
Other Claims

Source:
#
x

* F17 CHUMS

** A43C Claims System

= Percentage point difference

AUS includes only forward mortgages accepted and endorsed by the FHA scorecard (TOTAL).

Department of Housing and Urban Development, Housing - Deputy Assistant Secretary for Risk Management and Regulatory Affairs, Office of Evaluation

Page 5 of 5