Federal Housing Administration (FHA) officials expect to insure over two million single-family loans in fiscal year 2009, which ends September 30, and 2.25 million in full year 2010.
During the first three quarters of FY 2009, FHA endorsed approximately 1.39 million loans totaling $255.8 billion. To reach two million, FHA will have to endorse over 600,000 mortgages in the final quarter.
The latest FHA Outlook report shows the agency insured 197,600 loans, including FHA-insured reverse mortgages, in July, which is a new record for the agency.
"Given our expectation that FHA loan volumes will continue to be high until the credit crisis passes, we have just received authorization by Congress for the authority to endorse up to $400 billion for FHA insurance and are asking the same for next year," FHA commissioner David Stevens said in an Aug. 14 speech that was just released by the agency.
Based on average loan size, FHA loan volume will hit $367.5 billion if two million loans are endorsed.