HousingWire says seriously delinquent mortgages insured by the Federal Housing Administration hit 713,104 in May, the highest since the beginning of the year, but 23 percent higher than May 2011, and more than double the seriously delinquent loans from Fannie Mae and Freddie Mac—3.5 percent versus 9.4 percent for FHA. In addition, of FHA-backed loans modified in 2011, more than double the number for Fannie and Freddie re defaulted within 12 months. The $1 billion settlement from Bank of America over the Countrywide fiasco saved it from a Treasury Dept. bailout; it also raised insurance premiums to further its funding. FHA insured 18.9 percent more mortgages in May 2012 than a year ago, and 4.9 percent more than the prior month. With a stalled economy and sluggish job growth, MHProNews.com has learned a rise in delinquent mortgages could deplete the resources of the FHA.
(Image credit: Federal Housing Administration)