FHA Loan Applications Plunge 49% in June

The number of Federal Housing Administration (FHA) single-family loan applications plummeted by nearly 50% in June compared to the previous month, according to a loan production report issued Friday by FHA.

FHA loan applications fell 49% in June to 93,734, compared to the previous month when there were a total of 182,431 applications received.

So far, June had the lowest application volume for FHA single-family loans than any other month in 2013, the highest volume month being March with 221,596.


The decrease in applications for June come following a June 3 implementation of a new policy that makes GHA loans more expensive over the long-term, and changes on April 1 that raised the annual mortgage insurance premium to 1.35% over the life of the loan.

Home Equity Conversion Mortgage (HECM) loan application activity declined slightly in June to 6,495 compared to 6,526 applications recorded for May 2013.

The highest month for HECM application activity for 2013 thus far was March with 13,613 loans, while April recorded the least HECM volume with 5,182, according to FHA’s report.

View the FHA Production Report for June 2013.

Written by Jason Oliva

Join the Conversation (1)

see all

This is a professional community. Please use discretion when posting a comment.

  • This statement is nonsense: “The highest month for HECM application activity was March 2013 with 13,613 loans, while April recorded the least HECM volume with 5,182.” That is the highest number reflected in this very limited report but it is certainly not the highest number the HECM program has ever garnered in a single month.

    The highest month for applications (or more correctly HECM case number assignments) is September 2009 with 19,055. There have been 5 additional months with applications far in excess of 13,613 applications. Beyond that April 2009 beat out March 2013 by two applications (13,615).

    What is troubling is that last year the applications for April through June 2012 were much stronger. The concern is that the applications for this quarter could be worse and the outlook for the next quarter worse still.

string(84) "https://reversemortgagedaily.com/2013/08/19/fha-loan-applications-plunge-49-in-june/"

Share your opinion