December 28, 2011 (Shirley Allen)

The number of seriously delinquent loans insured by the Federal Housing Administration (FHA) jumped up 4.2 percent from October to November and is 17.0 percent higher than a year ago according to the agency’s Single-Family Outlook report for November.

An additional 27,792 loans became 90 days or more past due in November bringing the total number of seriously delinquent loans in the FHA’s portfolio to 689,346. In the last year, the number of seriously delinquent loans has increased by 100,399.

A total of 125,596 FHA loan applications were submitted in November, 3.1 percent lower than the 129,675 applications submitted in the previous month of October. Total applications were also lower than in November of last year when 141,199 applications were submitted, a decline of 11.1 percent.

Refinance loan applications declined by 2.0 percent from October to November with a total of 50,730 applications submitted in November compared to 51,772 submitted in October.

Refinance applications continued to be significantly lower compared to last year despite the historically low interest rates in November. The total amount of applications submitted were 26.5 percent lower than the 69,062 refinance applications submitted in November of 2010.

The total number of purchase loan applications was also lower in November, declining by 4.6 percent compared to October. A total of 67,358 applications were submitted in November to purchase homes, down from 70,580 applications submitted in October. Purchase applications were 5.4 percent higher than in November of last year when 63,920 applications were submitted.

The total number of FHA insured loans that were completed in November increased 0.2 percent from October, rising from to 88,060 to 88,206. November’s loan completions continued to remain well behind last year’s pace of 131,258 loan completions.

Purchase money mortgages accounted for 64.7 percent of all completed FHA insured loans in November with 57,038 completed, a decline of 5.9 percent from October and 12.1 percent lower than the 64,896 purchase money mortgages in November of 2010.

Completed FHA insured refinance loans accounted for 30.1 percent of all completed loans in November, which was 55.7 percent lower than last year. The 26,514 loans completed in November were still 15.4 percent higher than in October.

The average FICO score for a homebuyer securing an FHA loan in November was 695, down from 696 in October and down from 700 a year ago. For refinanced transactions, the average FICO score in November was 703, unchanged from both the previous month and from a year earlier.

At the end of November, the FHA had 7,376,641 insured single-family mortgages in its portfolio with an amortized balance of $1.030 trillion.

The number of loans insured by the FHA has increased by 9.4 percent in the last year while the amortized balance has increased by 11.9 percent.

The serious delinquency rate, homes that were 90 days or more past due, was 9.3 percent in November, up from 9.0 percent in October and also up from 8.7 percent in November 2010.

Tags: FHA, Single-family Outlook report, loan originations, purchase loans, refinance loans, FICO score, serious delinquency rate