Polygon Research Blog

September FHA Lending and Quarter Update

2021-11-18 08:42 GovLoans Fair Lending
Every month we take a look at the state of FHA lending by leveraging our app, FHAVision. FHAVision is an interactive dashboard of monthly FHA endorsement data by originator and sponsor. With historical data dating back to 2010, we pull in current data each month as soon as it is published by HUD. Our users have access to loan-level data on 1300+ lenders by loan purpose, channel, and interest rate, with geographical analysis of FHA lending trends from the national level down to zip code.

Year-to-Date FHA Loan Volume and Production at Its Highest Level since 2010

2021 YTD FHA Loan Volume is over $258 Billion and FHA Loan Production is 1,075,275, surpassing 2010 results for the first 3 quarters of that year. 
Source: FHAVision, Updated through Sept 2021

Top 3 Counties for FHA Purchase Loan Production

The top 3 counties that stood out in terms of FHA purchase loan production were:
  1. Harris County, TX: 11,022
  2. Cook County, IL: 9,401
  3. Maricopa County, AZ: 8,966
Among these three counties, Cook IL saw the best year-to-date result over the last 12 years in terms of FHA Purchase Loan Production.
Source: FHAVision, Updated through Sept 2021

Rehabilitation Loans (203(k) FHA Loan)

We are starting to take a closer look at the 203k loan production trends because of the potential of this type of loan financing to expand homeownership opportunities and assist in the revitalization of neighborhoods. The purpose of 203k FHA Mortgage Insurance Program (rehabilitation loans) is to help eligible borrowers access affordable finance. It enables a homebuyer to finance the purchase of a home and the cost of its rehabilitation through a single mortgage. The program also allows borrowers to refinance an existing mortgage and use the proceeds to rehabilitate their homes. The market size for 203k lending was $3.8 Billion at its peak in 2011 (in the last 12 years), with Wells Fargo the #1 Lender with $1.193 Billion. By 2020, this market size had shrunk to $1.73 Billion, with a new leader in the space - Loandepot. For 2021YTD, the total FHA 203k loan volume is $1.18 Billion.

Below is a quick overview of the Loan Volume of rehabilitation loans 2021YTD by state and by loan purpose. New Jersey stands out as the #1 state by loan volume ($193.6 Million). In 2010, California was the #1 state by loan volume ($385.3 Million for 2010), but now, in 2021, CA is #8 in terms of rehabilitation loan volume. 
Source: FHAVision, Updated through Sept 2021

For further insights and exploration, visit Free Resources in our store to download the latest 2021 FHA Infographic, or you can subscribe to FHAVision for detailed insights in all markets. For more information visit: Polygon Research.