FHA Market Profile: First Half 2011
Find Out Where the FHA Business Is:
- Spot opportunities for new business
- See which lenders are increasing their market share, and which ones are pulling back in 2011
The FHA single-family mortgage insurance program saw a decline in market share during the first half of 2011 compared to recent periods, but still accounted for 62.2 percent of primary mortgage insurance activity. The volume of originations declined in the period, but the FHA share of the MI business is likely to stay at historically high levels, due to the weakness of the private MI sector.
It’s interesting to note that in 2005 and 2006 FHA’s share of home-purchase originations was less than three percent, and in 2010 it rose to 34.9 percent. This year through June FHA market share is hardly down from its peak –at 33.3 percent.
This newly released study offers valuable market intelligence for industry lenders, vendors and researchers.
The first section of the study ranks the top 50 FHA lenders in each state, broken out by purchase-money (and refi) lending and their share originated as a sponsor. In the second section you will find a lender-by-lender analysis of where in the country the top 25 FHA lenders were getting their loans. The last section of the study offers details of FHA jumbo lending by state and by lender. FHA reverse mortgage lending is not included in the data.
The competition to do FHA lending today is heating up, as more borrowers cannot afford the very high downpayments now being demanded to get a good rate on conventional loans. Some in government would raise the FHA’s requirement to a five percent downpayment, but this idea faces strong pushback.
FHA Lending Facts:
- Six lenders in California grew their volume more than 100% at the halfway point in the 2011. The eighth largest, Broker Solutions Inc., grew at 130.6%
- Bank of America’s FHA volume in Minnesota was down 52.3% from 2010.
- The sixth largest FHA lender in Connecticut, Franklin American Mortgage Co., got 81.3% of its loans from correspondents.
- Wells Fargo did 23.8% less volume in New Jersey over 2010.
- Quicken Loans moved up to fourth place from seventh in Georgia. And Monarch Bank moved up to seventh place in Virginia.
Use this study on half-year 2011 data to craft your business strategy today.
