We are pleased to announce that we've updated FHAVision with the latest FHA Single-Family endorsement data.
FHAVision is an interactive dashboard of monthly FHA endorsement data by originator and sponsor beginning in 2010. We continuously update the app. Our users have access to loan level data on 1400+ lenders by loan purpose, channel, and interest rate. Geographical analysis of FHA lending trends is available from the national level down to the zip code level.
What are some of the trends we noticed?
1) May Purchase OriginationsMay 2021 had one of the lowest number of FHA purchase loans produced - 63,536 FHA purchase loans.
May 2017 was the month with the most FHA purchase loans originated in the last 11 years. A quick analysis of the single-family production shows that FHA purchase loans made up 19.7% of purchase loans that year. In 2020, FHA purchase loans made up only 16.9%. However, first-time homebuyers made 85.5% of purchase loans in May 2021, up from 83.9% in May 2020 and 83.3% in May 2017.
2) Banks continue the downward trend of originating FHA purchase loansWe noticed the continued absence of banks, especially large banks, in the FHA lending space. Among the top 30 lenders of FHA purchase loans, only one was a bank, Gateway First Bank. We then looked at four large banks, and traced back their FHA loan volume over the years. 2021 below shows year-to-date, i.e. not the full 2021, but the first 5 months of this year.
Source: FHAVision. Data from HUD SF Snapshot, filtered to FHA purchase loans; and target lenders.
Below is an aggregate view of these four banks' FHA purchase loan production year-over-year for the Month of May. As banks have steadily decreased their FHA purchase loan production, the independent mortgage lenders have picked up that business and have steadily increased their FHA purchase loan production.
Source: FHAVision. Data from HUD SF Snapshot, filtered to FHA purchase loans, and target lenders.
3) Average FHA Loan Size IncreasedWhile FHA refi loan size fluctuated over the years, FHA loan purchase size steadily increased, from $171,650 in May 2010 to $247,707 in May 2021.
Source: FHAVision. Data from HUD SF Snapshot.