**FHA Portfolio Analysis**

**Data as of August 2006**

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height="5.845833333333333in"}

***Multifamily Insured Portfolio***

**Endorsements**

-   Through the eleventh month of FY 2006, FHA endorsed a total of 858
    multifamily mortgages compared to 834 multifamily mortgages reported
    during the same period a year ago.

-   For the month of August, new construction and substantial
    rehabilitation mortgages totaled 20 for \$142.6 million.

-   Fiscal year to-date, the number of Section 221(d)(4) mortgages was
    207 insured for \$1.1 billion.

**Insurance-in-Force**

-   As of August 31, 2006, the dollar volume of FHA's multifamily
    insurance-in-force was \$55.9 billion, approximately \$300 million
    less than the balance reported for the same period a year ago.

-   Since August 31, 2005, the number of FHA multifamily insured
    mortgages declined 2.5 percent to 12,271.

**Prepayments**

-   Through August of this fiscal year, the number of prepayments
    totaled 876 for \$3.5 billion, compared to 943 prepayments for \$2.9
    billion for the same period during FY 2005.

**Claims**

-   The number of claims processed through the end of August 2006 was
    179 for \$568.7 million, compared to 291 claims for \$1.1 billion
    for the same period a year ago.

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***Multifamily Notes and Properties***

**Notes**

-   As of August 31, 2006, the multifamily note inventory when compared
    to the same period last year had decreased 7.2 percent in dollars to
    \$3.6 billion but increased less than one percent in number from
    2,935 to 2,962 notes.

-   At the end of August 2006, multifamily note assignments had
    decreased to 234 from 407 note assignments reported for the same
    period a year ago and the dollar amount of the notes assigned was
    \$538.3 million, which was 47.9 percent below the dollar amount
    reported for the same period a year ago.

**Properties**

-   The balance of the property inventory was 1 with no cost to HUD;
    which is no change from the inventory and cost for the same period a
    year ago.

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    height="5.563888888888889in"}

***Single Family Insured Portfolio***

**Insurance-in-Force**

-   From the end of August 2005 to the end of August 2006, FHA single
    family insurance-in-force decreased by 376,255 insured mortgages.
    This was a drop of 9 percent to 3,908,590 active mortgages.

-   At the end of August 2006, the dollar amount of insurance-in-force
    had decreased 4.9 percent compared to a year ago.

**Prepayments**

-   Eleven months into this fiscal year, single family prepayments
    totaled 662,321; 31 percent below the number of prepayments reported
    during this same period in FY 2005.

**Claims**

-   Single family claim terminations processed through the end of August
    2006, have decreased 20 percent to 54,189 compared to the number of
    claims processed during the same period a year ago.

**Endorsements**

-   Through the eleventh month of FY 2006, FHA endorsed 391,466
    mortgages, totaling \$50 billion, 17 percent under the number
    reported during the same period a year ago.

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-   Eleven months into this fiscal year, Mutual Mortgage Insurance Fund
    endorsements decreased by 17 percent to 367,804 from 442,620
    reported during the same period last fiscal year.

-   October through August of FY 2006, the number of condominium
    mortgages decreased by 27 percent to 20,295 compared to 27,891
    reported for the same period during FY 2005.

-   Loans to purchase and improve homes under Section 203(k) decreased 2
    percent to 2,669 through August of FY 2006 compared to 2,716
    reported during the same period last year.

-   Fiscal year to-date, the number of adjustable rate mortgages (ARM's)
    was 10,835, a decrease of 79 percent compared to the same period
    during the prior fiscal year; fixed rate mortgages (FRM's) decreased
    10 percent to 380,631 mortgages.

-   Refinancings have decreased 30 percent in number from 148,219
    through August of FY 2005 to 103,031 during the same period for FY
    2006.

-   Through August of FY 2006, the number of HECM endorsements totaled
    69,018 for \$11 billion; a 77 percent increase over the 39,041
    mortgages for \$5.6 billion reported through August of FY 2005.
    Fiscal year to-date, HECM refinancings totaled 4,846.

    ![](media/image4.wmf){width="9.264583333333333in" height="5.1875in"}

***Single Family Notes and Properties***

# Notes 

# As of the end of August 2006, the single family notes inventory was 8 percent less than the number at the end of the same period in FY 2005.

-   Through August 2006 the number of assigned purchase money mortgage
    notes was 146 compared to just 1 assigned during the first eleven
    months of FY 2005.

# Accelerated Claims Disposition Notes

-   Liquidations of REO in the first eleven months of FY 2006 averaged
    nearly 200 per month, 3 percent less than the average for the same
    period in FY 2005.

-   Liquidations of notes have averaged slightly more than 230 per month
    in the first eleven months of FY 2006.

-   The inventory of notes at the end of August 2006 was down nearly 41
    percent from the end of September 2005.

**Properties**

-   The single family property inventory had 30,135 properties at the
    end of August 2006, an increase of 4 percent over a year ago.

-   Property sales numbered 46,580 through August 2006, 13 percent below
    sales for the same period in FY 2005.

-   During the month of August 2006, sales exceeded conveyances by
    nearly 17 percent.

    ![](media/image5.wmf){width="9.43125in"
    height="5.083333333333333in"}

***Single Family Detail***

**Defaults**

-   At the end of July 2006, FHA's single family default rate reached a
    high of 6.57 percent, compared to 6.19 percent for the same period a
    year ago.

-   The 50 metropolitan statistical areas (MSAs) with the highest
    default rates as of July 2006 accounted for 34.5 percent of the
    national total of defaults.

-   11 of the MSAs in the top 50 that have endorsed ARMS have higher
    default rates on FRMs than on ARMs.

# 

# Loss Mitigation Activity

-   The use of forbearance agreements to keep borrowers in their homes
    dropped 23 percent, based on a total of 18,980 for the first eleven
    months of this fiscal year compared to 24,644 times during the same
    period a year ago.

-   October 2005 through August FY 2006, lenders used loan modifications
    a total of 35,119 times compared to 37,207 times during the same
    period last fiscal year.

-   Lenders used partial claims a total of 14,931 times during the first
    eleven months of FY 2006, compared to 13,216 times for the same
    period last fiscal year.

# Insurance Claims

-   Through August of this fiscal year, pre-foreclosure sales were
    4,560, a drop of 9 percent compared to the same period a year ago;
    deeds-in-lieu decreased 13 percent to 259, compared to the first
    eleven months of FY 2005 when it was 296.

-   Conveyance foreclosure claims numbered 47,695 during the first
    eleven months of FY 2006, down 14 percent from the same period
    during FY 2005 when the number was 55,708.

    ![](media/image6.wmf){width="9.43125in"
    height="5.407638888888889in"}

    ![](media/image7.wmf){width="9.43125in"
    height="5.122916666666667in"}

    ![](media/image8.wmf){width="9.264583333333333in"
    height="5.311111111111111in"}

***Title I Portfolios***

**Insurance-in-Force**

-   Property improvement insurance-in-force in August 2006 declined to
    30,632 loans, down 25 percent from this same period last fiscal
    year.

-   Manufactured housing insurance-in-force declined to 25,076 loans, a
    drop of 13 percent from this same period a year ago.

**Prepayments**

-   Property improvement loan prepayments for the first eleven months of
    FY 2006 decreased 31 percent compared to the number reported for the
    same period last fiscal year.

-   Manufactured housing loan prepayments decreased 32 percent during
    the first eleven months of this fiscal year, compared to the number
    reported for the same period in the prior fiscal year.

**Claims**

-   For the first eleven months of FY 2006, property improvement claim
    terminations processed decreased by 46 percent compared to the same
    period in FY 2005.

-   During these eleven months, the number of manufactured housing
    claims processed decreased 4 percent compared to the number reported
    for this same period in FY 2005.

**Endorsements**

-   Property improvement endorsements were down 12 percent to 2,900 for
    the first eleven months of FY 2006, compared to 3,285 for this same
    period in FY 2005.

-   During the first eleven months of FY 2006, there were 1,428
    manufactured housing endorsements, down 18 percent from the 1,735
    reported in the corresponding period of FY 2005.

**Notes**

-   The Title I note portfolio included 23,028 notes after the first
    eleven months of FY 2006, compared to 26,695 at this same time in
    the previous fiscal year.

-   During the first eleven months of FY 2006, a total of 4,307 Title I
    note collection cases were closed, 7 percent fewer than the 4,652
    cases closed during the same period in FY 2005.

## ![](media/image9.wmf){width="9.43125in" height="6.539583333333334in"}  {#section-1 .unnumbered}

##  

## Commitments and GI/SRI Credit Subsidy

**MMIF**

-   MMIF commitments equaled \$47.4 billion through the eleventh month
    of FY 2006.

-   The MMIF commitment authority is \$185 billion for FY 2006.

**GIF/SRIF**

-   GIF/SRIF commitments, which, for multifamily programs, include only
    those programs that are in positive credit subsidy risk categories,
    totaled \$14.4 billion through the eleventh month of FY 2006.

-   Fiscal year-to-date, HECM commitments have totaled \$11.0 billion
    for FY 2006.

-   The GIF/SRIF commitment authority is \$35 billion for FY 2006

**GI/SRI Credit Subsidy**

-   FHA used \$2.15 million in credit subsidy through the eleventh month
    of FY 2006.

-   FHA authority is \$18.7 million for FY 2006.

    ![](media/image10.wmf){width="8.097916666666666in"
    height="6.823611111111111in"}

***Single Family Market Comparisons***

***(Due to a lag in reporting of conventional information, these notes
describe data for the previous month)***

**Insured Mortgage Applications**

-   Total mortgage insurance applications decreased 8 percent through
    July of this fiscal year compared to the same period in FY 2005.

-   Through July of this fiscal year, FHA applications decreased 18
    percent; this compares to a 7 percent decrease in conventional
    mortgage applications, but an 8 percent increase in VA guarantee
    applications.

-   FHA's share of total mortgage insurance applications was 18 percent
    through July of this fiscal year compared to 21 percent for the same
    period a year ago.

**Insured Mortgage Endorsements**

-   FHA endorsement dollars decreased 11 percent through July of FY 2006
    compared to the same period a year ago.

-   FHA's share of insured mortgage endorsement dollars is 18 percent
    through July of FY 2006 compared to 21 percent for the same period
    in FY2005.

-   Through July of this fiscal year, the share of conventional insured
    dollars is 74 percent and of VA 8 percent.

**Home Sales Market**

-   The number of FHA purchase mortgages decreased 12 percent through
    July of FY 2006 compared to the same period during FY 2005

-   Overall, home sales decreased 3 percent through July of this fiscal
    year compared to the same period in FY 2005.

-   FHA's share of home sales was 3.9 percent through July of this
    fiscal year compared to 4.3 percent in the same period a year ago.

    ![](media/image11.wmf){width="9.43125in" height="5.475in"}

### Executive Summary

Status of FY 2005 Housing Contracts and System Funds

#### As of August 2006

##### Data is not available for publishing