FHA Releases Single Family Loan Performance Trends Report for June 2013

According to their June 2013 report, FHA says:

"There are fewer loans with high risk characteristics in FHA's portfolio and the impact can be seen in the seriously delinquent rate of recent originations

·         Loans under 620 have a seriously delinquent rate of 24.4%

·         Loans of 620 and above have a seriously delinquent rate of 5.77%

·         Loans under 620 are 12% of FHA's portfolio and comprise 38% of the seriously delinquent loans

·         Loans of 660 and above are 61% of FHA's portfolio and comprise 28% of the seriously delinquent loans

·         Loans of 660 and above have a seriously delinquent rate of 3.72%

·         FHA's worst performing books are getting smaller as a percentage of FHA's portfolio

·         FHA's 2005 - 2007 books are only 7% of their portfolio and 2008 is 5.9% of its portfolio.  

·         Downpayment assistance loans are only 4.3% and have seriously delinquent rate of 23.28%

·         New 90+ day delinquencies are lower now than any period since 2008

·         Condominiums have a lower seriously delinquent rate (7.29%) than the FHA average (8.38%).  Single family detached homes have a S/D rate of 8.06%."

I am feeling much better about this.  The market has been telling us this all year, but it is nice to have statistics to back it up!

Enjoy the remainder of your Summer!