Originations of Federal Housing Administration (FHA)-backed loans fell 23% during the first three quarters of fiscal 2011 compared to the same period a year earlier, a further sign of a weakening single-family market.

As of June 30, mortgage bankers had originated $186.4 billion of FHA-insured mortgages, compared to $242.6 billion during the first nine months of FY 2010.

But the monthly "FHA Single-Family Outlook" report also shows that lenders funded $17.7 billion of FHA loans in June, up from $16.9 billion in May. FHA refinancings in June totaled just $3.8 billion.

The serious delinquency rate (90 days or more past due) on FHA's growing mortgage insurance portfolio was 8.2% in June compared 8.6% a year ago.

FHA servicers foreclosed on 68,900 loans during the first nine months of 2011, down less than 1% from the same period in FY 2010.

FHA reverse mortgage lending remained steady at $1.4 billion during the month of June. 

However, servicers filed 5,650 claims on FHA-insured Home Equity Conversion Mortgages during the first three quarters of 2011, a 70% jump from the same period in FY 2010.

Earlier this year, FHA issued new guidelines for dealing with HECM borrowers who are behind on or stopped paying their property taxes and homeowners insurance.

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