FHA Foreclosures Jump 73 Percent in April
Foreclosure starts on loans backed by the Federal Housing Administration rose 73 percent between March and April, driven by defaults on mortgages issued in 2008 and 2009, according to a report today by mortgage data provider Lender Processing Services.
The increase in FHA foreclosure actions came as overall foreclosure starts dropped by 2.6 percent, Jacksonville, Florida-based LPS said. Nationally, there were 181,584 foreclosure starts in April, down from 186,446 in March. For FHA loans, there were 63,126 foreclosure starts in April, up from 36,311 in March.
LPS officials attributed the spike in FHA foreclosures to the expanded role the government mortgage insurer played following the collapse of private housing finance in 2008. FHA loan originations tripled that year.