July Shows 42% Increase in FHA Streamline Refinances

By Sari R. Updated on 9/6/2012

 

According to government data, there was a 42% increase in FHA mortgage refinances as compared to June 2012.  This translates to 25,750 refinance application in July as opposed to 18,100 refinance applications in June.

The FHA announced a new streamlined refinance program in June that meant a rate reduction on annual insurance premiums.  This new program also meant that principal and interest could be cut and that income, credit score requirements, appraisals, and employment would also be waived.  This new program began on June 11 and is for borrowers who took out their original loan before the 1^st of June on 2009.

In July, the FHA endorsed around 110,000 mortgages.  Over 65% of the new loans were made up of purchase mortgages and the remaining loans were reverse home loans and refinances.  Despite all this, the government reported 725,000 FHA backed loans that were in delinquency in July – up 21% from a year ago.  The delinquency rates are the same as in June.