“We have shown it is possible to meet the mission while also being fiscally prudent and being a good steward of taxpayer funds,” said FHA Commissioner Julia Gordon.

Mortgage applications were up 2.8% on a weekly basis while interest rates stayed put.

The average credit scores for new originations of FHA mortgages declined somewhat after BofA and JPMorgan Chase ceased correspondent aggregation in the market.

Both FHA and VA volume in Ginnie MBS issuance declined on a monthly basis in October.

Demand for mortgages from banks declined in the third quarter and many banks further tightened underwriting.

ARMs accounted for 10.7% of mortgage applications last week.

Priorities at FHA include facilitating loan assumptions and originations of small-balance mortgages.

GSE securitization of mortgages with private MI declined in the third quarter while FHA activity increased.

FHA Commissioner Julia Gordon cautioned attendees at the annual conference of the Mortgage Bankers Association not to expect a further cut to the mortgage insurance premium rate anytime soon.

Both the FHA and VA programs saw increases, but the bulk of the growth in Ginnie issuance in the third quarter came from FHA loans.