FHA Single Family Philadelphia Home Ownership Center Julie Shaffer, Director, Philadelphia HOC Bradley Payne, PHOC POC Cleveland, Ohio (216) 357-7671 FHA Program Information: www.fha.gov Hotline: 1-800-CALLFHA or 1-800-225-5342 answers@hud.gov 06/8/12

FHA MARKET SHARE There’s no real data for states and localities on what percentage FHA represents of the of loans originated in any given year. However, based on cumulative data, we know that FHA’s market share has grown substantially in the last few years, both in Ohio and in the US as a whole. The Mortgage Bankers Association conducts a quarterly National Delinquency Survey of its members on the number of loans serviced by loan type, and the percentage of those loans that are in some stage of delinquency or foreclosure. The MBA estimates that its survey covers about 88% of all loans, and goes down t the state level This graph shows what we all knew was happening, even without any hard data. FHA’s share of the mortgage market has grown by leaps and bounds the last few years. As you can see by this chart, FHA’s share of loans being serviced has more than doubled in the last few years, in the US as a whole and in Ohio. 06/8/12

FHA MARKET SHARE This chart illustrates what we’re talking about. FHA loan production soared 2008 through 2011, especially in 2009 and 2009 when FHA had the biggest year in its more than 75 year history. The data for 2012 is as of April 30, seen months into our fiscal year. Based on recent application trends, we expect that we’ll about equal FY 2011’s production levels in both Cuyahoga County and in Ohio. The national trend looks almost the same as it does for Cuyahoga County and Ohio. 06/8/12

SERIOUSLY DELINQUENT RATE Unlike the MBA’s National Delinquency Survey which, as its name suggest, is based a survey and sampling, this chart reflects actual delinquencies reported monthly y FHA servicing lenders. FHA defines “seriously delinquent” as a loan more than 90 days delinquent, or in foreclosure. As you can see, the general trend the last few years has been upward for Cuyahoga County, Ohio and the US. Cuyahoga County traditionally runs higher than Ohio, and Ohio runs higher than the US, but the trends are almost identical. You see a few blips of suddenly lower rates here and there. These reflect reporting issues – mainly lenders reporting late – rather than any real decline in rates. 06/8/12

SERIOUSLY DELINQUENT RATE How does FHA compare to other loan types. For that we have to go back to the MBA National Delinquency Survey. This chart reflect loans that are 90+ days delinquent or in foreclosure. As you can see, FHA runs slightly higher than the overall rate, but well below subprime. These rates have remained fairly stable, at fairly high rates, for the past few years. 06/8/12

DELINQUENCY RATES AND LOSS MITIGATION What about FHA Loss Mitigation? FHA is proud of our Loss Mitigation efforts, and we think the results back us up. This chart, again with data taken from the MBA National Delinquency Survey, shows the percentage of loans in foreclosure. As you can see, FHA runs just slightly above the overall rate and well below subprime loans. The actual foreclosure rate runs well below our delinquency rate. 06/8/12

FY 2012 FHA REO INVENTORY IN OH   We’ve seen a recent upturn in acquisitions that has led to an increase in our inventory. However, we’re getting into the tie of the year when we traditionally sell a lot of homes. 06/8/12

Ohio REO Trends by HUD Office Jurisdiction 06/8/12