Preliminary numbers compiled by Inside Mortgage Finance suggest that FHA’s share of new mortgage originations has jumped from 5 percent in the fourth quarter of 2007 to 8 percent in the first quarter of 2008.
FHA’s share is expected to grow faster with the advent of higher loan limits and tougher underwriting from competing Fannie Mae and Freddie Mac loan programs. But despite the gains in FHA business, most of which is attributable to borrowers rushing to refinance out of conventional ARMs, relatively little of the growth can be attributable to the much ballyhooed FHASecure program, which allows delinquent borrowers to refinance into new FHA loans.
According to the latest numbers from FHA, only 1,042 delinquent conventional mortgages have been refinanced into FHA since October – or about 1 percent of the total conventional to FHA total refi volume. Inside Mortgage Finance is hosting an audio conference on FHASecure today at 3 pm ET. Click here for more info.
